Total Produce Maintains 2014 Earnings Estimate
DUBLIN, IRELAND - Total Produce’s strategic acquisitions and steady performance results in the first half of 2014 in a less than favorable market is leading to a positive outlook for the rest of the year.
“The Group’s growth will continue to be driven by successful acquisitions. Total Produce has recently agreed to acquire the final 50% of All Seasons Fruit in The Netherlands and continues its expansion in North America with the acquisition of a 45% interest in Eco Farms in California,” said Carl McCann, Total Produce Chairman.
The Group has invested over €9 million including contingent consideration payable on the achievement of future profit targets. It acquired a 45% interest in Eco Farms Investments Holdings LLC, the California-based avocado grower, marketer and distributor. Total Produce still has the option to acquire further shares in Eco Farms which could give it a majority stake.
“Total Produce has recorded a robust performance in the first half of 2014 when measured against a particularly strong comparative period in 2013. The group continued to record volume growth in 2014 although average prices decreased in the period. We are pleased to report a marginal increase in adjusted earnings to 4.86 cent per share,” said McCann.
Greater production and excess supply in some key produce lines led to downward pressure on prices in the period in the six month period. The like-for-like basis, excluding the effect of divestments, acquisitions and currently translation, total revenue of €1.59 billion was 1.7% lower with some volume growth offset by average price decreases.
The Group saw an exceptional gain in the period of €2.5m due to a fair value uplift in an equity interest and a 5% increase in the interim dividend to 0.64 cent per share.
Other notable highlights from the Group’s financial report include:
- Revenue (1) of €1.59 billion
- Profit before tax up 5.7% to €24.2m
- Adjusted earnings per share (1) up 0.4% to 4.86 cent
- Adjusted EBITDA (1) down 2.7% to €38.1m
- Adjusted EBITA (1) down 3.7% to €30.2m
- Adjusted profit before tax (1) down 4.6% to €27.2m
- Interim dividend increased by 5.0% to 0.64 cent per share
Good job of the first half of the year, Total Produce!