Total Produce's profits rise

Total Produce has raised its earnings guidance for the year, as the fruit company this morning reported rising revenues and profits for the first half of the year, boosted in part by acquisitions last year.

The fruit company upped its full year earnings per share target towards the upper end of the range between 7.0 and 8.0 cent per share, and raised the interim dividend by 5 per cent to 0.567 cent.

Results for the six-month period ended June 30th, show that the fruit company experienced a 5 per cent rise in revenue to €1.4 billion, while adjusted earnings per share increased by 6.7 per cent to 4.48 cent.

The performance was boosted by the contribution from a number of acquisitions, namely the acquisition of 50 per cent of Frankort & Koning in the Netherlands, and the increase of Total Produce's shareholding in South African company Capespan to 25.3 per cent.

In geographical terms, the company's Northern Europe division continued to excel, with revenue up 2.3 per cent to €327.3 million, and profits 20 per cent higher than the same period last year at €10.8 million.

The strong performance in Northern Europe was offset by weaker conditions in certain euro zone locations, the company said. The company's euro zone division of its fresh produce business, saw a fall of 20 in adjusted ebita (earnings before interest, tax and amortisation) to €10.4 million, due to weaker trading conditions in certain euro zone locations. Revenue was also down, at €653 million, compared to €659 million in the same period of 2011.

Increased revenue as a result of the completion of the Frankort & Koning acquisition in March 2012 was offset by the effect of the divestment of the Continental European division of Capespan Europe in January 2012, the company said. Total Produce sold its 50 per cent shareholding in the European fruit distribution business of Capespan Europe to Capespan South Africa last year as part of its transaction to increase its stake in the South African fruit producer.

Net debt at 30 June 2012 was €94.6 million compared to €65.6 million at 30 June 2011 and €75.6 million at 31 December 2011.

Total Produce plc created on 1 January 2007 following its demerger from Fyffes. It grows, sources and supplies fresh produce to retailers and wholesalers, and has over 90 facilities across 20 countries in Europe.