European fresh leader Total Produce has reported a strong set of results for the first half of 2017, enjoying year-on-year growth in both revenue and profit.
Sales climbed 12.2 per cent to just over €2bn, with adjusted profit before tax rising 11.8 per cent to €39m and adjusted EBITA up 12 per cent to €42.5m.
“Total Produce has delivered a strong first half-year performance in 2017," confirmed chairman Carl McCann. "Revenue has increased by 12.2 per cent to €2.15bn and adjusted earnings per share has increased by 10.1 per cent to 6.78 cent."
According to the group, results benefited from the contribution of its recent acquisitions, offset in part by a negative impact on the translation to Euro of the results of foreign currency denominated operations.
Trading conditions were described as satisfactory, although In the early part of year, unusual weather conditions in Southern Europe lead to temporary shortages of certain salad and vegetable lines - something that "did not have a material impact" due to the group's diversified business model.
The North American division experienced relatively less favourable trading conditions in the period, Total Produce noted, and while overall volumes in this division increased on a like-for-like basis from prior year, the result was impacted by lower pricing due to greater volumes of product in the market and weather conditions that negatively impacted quality.
"The Group has continued its international expansion with a number of significant North American transactions," McCann continued. "It increased its shareholding in the Oppenheimer group (‘Oppy’) from 35 per cent to 65 per cent. In addition, Oppy concluded important strategic agreements with the New Zealand based T&G Global. The Group’s Los Angeles headquartered Progressive Produce business increased its scale with the acquisition of Keystone Fruit Marketing. The Group is actively pursuing further investment opportunities.
"We are pleased to announce a 10 per cent increase in the interim dividend to 0.8906 cent per share," he concluded. "The Group continues to target increased full-year adjusted earnings per share in the upper half of the previously-announced range of 12.0 to 13.0 cent per share."