Irish fruit firm Total Produce has posted a 2.3% drop in first-half pre-tax profits, which slid to EUR24.3m (US$35.2m), despite a small gain in revenue.
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In its interim results for the six-months ending 30 June, Total Produce said sales were boosted by acquisitions made during the second half of last year. Revenue increased 1.2% to EUR1.3bn.
However, the company added that trading conditions have been “challenging”, with an excess supply relative to demand in some segments.
Operating profit decreased to EUR22.3m in the period, down from EUR24.8m in the comparable period of last year.
Adjusted earnings before tax decreased by EUR1.3m, or 4.7%, to EUR26.3m on the same period in 2008. Total Produce said that this was “satisfactory” given the strength of the euro and economic environment.
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By GlobalDataDuring the six months, Total Produce said that it invested EUR2.7m to acquire a 50% stake in ASF Holland in addition to a EUR2.5m spend on existing joint ventures.
Total Produce also increased its stake in Capespan Group to 15.6% as a result of a share buy back by Capespan.
Total Produce chairman Carl McCann said that the results were in line with the company’s expectations.
“The constant focus by Total Produce on costs has enabled the group to overcome the tougher economic climate in various markets and to successfully meet its targets,” he said.
