‘Robust’ first-half results expected at Total Produce

First-half results are due tomorrow from Total Produce, the fruit distributor spun out of Fyffes.

The company’s initial 2016 EPS guidance range was 10.50 cent to 11.50 cent, but it narrows this to 11 cent to 11.50 cent, after trading for the first four months of the year had been satisfactory.

Davy analyst Declan Morrissey said pricing in Total Produce's European markets remained positive in the first half despite the ongoing Russian trade embargo on fresh produce.

“We expect a robust performance in the first half, in line with the upbeat trading statement at the end of May,” he said.

Acquisition

For the first-half of 2015, Total Produce reported adjusted pre-tax profit that was up 11.5 per cent to €30.3 million.

Pre-tax profits were unchanged at €24.2 million, while revenue rose 9.2 per cent in the six months to the end of June 2015 to €1.73 billion.

Earlier this year, Total Produce announced it had acquired a 65 per cent stake in US-based Progressive Produce, a grower, packer and distributor of conventional and organic produce with 2015 sales in excess of $200 million.

Davy said last year’s €20 million share buyback, combined with the annual dividend, underpins a focus on shareholder returns.