Total Produce reports sharp rise in first-half revenues

Total Produce, the fruit distributor spun out of Fyffes, has reported a first-half adjusted pre-tax profit that was up 11.5 per cent to €30.3 million from €24.2 million a year earlier.

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 to €1.73 billion as against €1.59 billion last year.

Revenues in Total’s Europe division, which includes Ireland, France, Italy, the Netherlands and Spain, rose 4.7 per cent to €833 million, while revenues in the non euro-zone business section, which includes the Czech Republic, Poland, Scandinavia and the UK, rose 5.4 per cent to €767 million. The group’s international division which includes North America and India reported revenues of €158 million, up from €91million a year earlier.

Total said it is now targeting full-year earnings at the top end of the previously announced range of 9.2 to 10.2 cent per share.

Operating profit in the first half was up 10.8 per cent to €27.2 million compared to €24.5 million for the first half of 2014.

Adjusted ebitda (earnings before interest, taxes, depreciation, and amortisation) was up 11.9 per cent to €42.6 million from €38.1 million.

Total reported an 11.1 per cent rise in adjusted earnings per share (EPS) to 5.52 cent. It said the interim dividend would be increased by 15 per cent to 0.736 cent per share.

Davy said the updated guidance implied a 2.5 per cent upgrade to its current forecast but also implied flattish year-on-year EPS growth for the second half of 2015.

Chairman Carl McCann said the latest results benefited from a stronger operational performance and recent acquisitions.

During the period under review, Total completed its fourth investment in North America with a 50 per cent investment in Gambles, a fresh produce company based in Toronto.

Gambles, which was founded in 1989 and employs over 280 staff, offers a wide range of fresh, local and imported produce that is delivered daily throughout Ontario to the retail, wholesale & food-services sectors. In 2014 it reported sales of CAD$170m (€118m).