Total Produce profits decline

Food group Total Produce has announced pre-tax profits after exceptional items which fell by 4.9 per cent in fiscal 2009.

The company recorded pre-tax profits of €28.4 milion for the year ending December 2009, compared to €29.8 million a year earlier.

Revenues fell by 3.3 per cent over the 12-month period under review to €2.43 billion.

On a constant currency basis, revenue for the Group was up 0.7 per cent. In the Fresh Produce division, revenue declined by 1.9 per cent to €2.33 billion due primarily to the strength of the euro which led to lower translation values of non euro revenues and marginally lower like-for-like volumes and average selling prices. These decreases were offset by the full-year contribution of acquisitions made in the second half of 2008.

Revenue in the Consumer Goods and Healthfoods Distribution division, which represents 4 per cent of group revenue, decreased by €40 million to €106 million.

The board is recommending a final dividend of 1.15 cent per share for fiscal 2009. The company said total dividend for 2009 will amount to 1.69 cent.

"The group has delivered a resilient performance in 2009 against the background of a challenging economic environment and adverse currency movements," said Total Produce chairman Carl McCann.

"For 2010, the extremely cold weather and heavy snowfalls throughout most of Europe have resulted in a slow start to the year keeping consumers at home and temporarily reducing demand. However, Total Produce remains positive about its position as one of the leading fresh produce companies in Europe with the benefit of a good spread of activities throughout the region," he added.

The group said is targeting 2010 adjusted earnings per share in the range of 5.50 cent to 6.50 cent.

Mr McCann added the company is in a "strong financial position and continues to pursue attractive acquisition opportunities.”