Total Produce Continues Strong Growth
Total Produce, one of the world’s largest fresh produce providers, has reported a 13.9% increase in revenue to €4.29 billion with adjusted EBITA up 13.3% to €83.5 million for its 2017 financial year. The results benefited from the contribution of acquisitions completed in the past twelve months offset in part by currency movements on the translation of the results of foreign currency denominated operations to Euro. The deconsolidation of a subsidiary to a joint venture interest at the beginning of the year had a marginal effect on revenue and adjusted EBITA and no effect on adjusted earnings per share.
Trading conditions overall for the twelve months were satisfactory. On a like-for-like basis, excluding acquisitions, divestments and currency translation, revenue was about 4% higher due to higher average pricing with volumes unchanged on the prior year. In the early part of 2017, unusual weather conditions in Southern Europe led to temporary shortages of certain salad and vegetable lines. However given the group’s diversified business this did not have a material impact.
Total Produce’s North American division experienced relatively less favourable trading conditions in some parts of the business. While overall volumes on a like-for-like basis in this division increased, the result was held back by lower pricing due to surplus product in the market and weather conditions that negatively affected quality.
Carl McCann, chairman of Total Produce, comments: “Total Produce has delivered very positive results in 2017. Total revenue has increased by 13.9% to €4.29 billion with an 11.7% increase in adjusted earnings per share to 13.48 cent. The group announced on 1st February 2018 that it had acquired a 45% stake in Dole Food Company for $300 million, subject to regulatory approval. It represents a very significant step in the history of Total Produce and a continuation of its successful acquisition and expansion strategy.”
Total Produce is targeting continued growth in 2018, on a like-for-like basis. The group has propose a 10% increase in final dividend to 2.4527 cent per share.
