Half-year profits up 5% at Total Produce

TOTAL PRODUCE has raised its earnings guidance for the year, as the fruit company reported rising revenue and profit for the first half of the year, boosted in part by the impact of acquisitions.

The fruit company upped its full-year earnings per share target towards the upper end of the range between 7 and 8 cent per share, and raised the interim dividend by 5 per cent to 0.567 cent.

Results for the six-month period ended June 30th show that the fruit company experienced a 5 per cent rise in revenue to €1.4 billion, while adjusted earnings per share increased by 6.7 per cent to 4.48 cent.

The performance was boosted by the contribution from a number of acquisitions, namely the acquisition of 50 per cent of Dutch company Frankort Koning, and the increase of Total Produce’s shareholding in South African company Capespan to 25.3 per cent.

In geographical terms, the company’s northern Europe division continued to excel, with revenue up 2.3 per cent to €327.3 million, while profit was 20 per cent higher than the same period last year at €10.8 million.

The strong performance in northern Europe was offset by weaker conditions in certain euro zone locations, the company said. The company’s euro zone division of its fresh produce business saw a fall of 20 per cent in adjusted earnings before interest, tax and amortisation (ebita) to €10.4 million, due to weaker trading conditions in certain euro zone areas.

Revenue was also down, at €653 million, compared to €659 million in the same period of 2011.

Increased revenue as a result of the completion of the Frankort Koning acquisition in March 2012 was offset by the effect of the divestment of the continental European division of Capespan Europe in January 2012, the company said.

Total Produce sold its 50 per cent shareholding in the European fruit distribution business of Capespan Europe to Capespan South Africa last year as part of its transaction to increase its stake in the South African fruit producer.

Net debt at June 30th was €94.6 million compared to €65.6 million at June 30th, 2011, and €75.6 million at December 31st, 2011.

Total Produce plc was created on January 1st, 2007, following its demerger from Fyffes. It grows, sources and supplies fresh produce to retailers and wholesalers, and has more than 90 facilities across 20 countries in Europe.

Total Produce closed up 2.4 per cent yesterday in Dublin at €0.43.