Revenues at Total Produce rose 10.4 per cent to €1.9 billion in the first half of the year as the fresh food group got a boost from acquisitions and higher average prices.
In the six months to June 30th, total revenues rose 10.4 per cent, while adjusted EBITA was up 13.2 per cent and adjusted fully diluted earnings per share grew 11.6 per cent. Profit before tax rose 5.8 per cent to €25.6 million.
The fruit distributor spun out of Fyffes said it benefited from acquisitions completed in the period and a circa 5 per cent like-for-like growth in revenue on the back of both volume growth and higher average prices.
A strong operational performance was offset in part by a small negative impact on translation to euro of the results of foreign currency denominated operations.
Expansion
Chairman Carl McCann said the group delivered “a very strong performance” in the first six months of the year as the group continued its expansion in north America in 2016, acquiring 65 per cent of Progressive Produce, a company headquartered in Los Angeles, as well as a number of other investments.
“The group continues to actively pursue further investment opportunities,” Mr McCann said, adding that the interim dividend was up 10 per cent to 0.8096 cent per share.
“The group is now targeting increased full-year earnings at the top end of the previously announced range of 10.50 to 11.50 cent per share.”
On the UK’s decision to leave the EU, Total Produce said while it has “created some macroeconomic uncertainties, it is not expected to have a material impact on the group”.
In a note Davy Stockbrokers said it was a “strong” set of results, adding that the international segment represented “a significant growth opportunity” for the group. It reiterated its “outperform” rating.
