Total Produce reported a 12% increase in first-half revenue due to contributions from its acquisitions, but the Ireland-based global fruit and vegetable giant said the results were also impacted by the conversion into euro from its foreign-exchange denominated operations.
The company said in a statement today (31 August) that revenue came in at EUR2.2bn (US$2.6bn) from a year earlier, while adjusted EBITDA rose 9.5% to EUR52.8m. Adjusted EBITA increased 12% to EUR43m and adjusted profit before tax was up almost 12% at EUR39m.
Adjusted diluted earnings per share climbed 10% to 6.78 cents, and Total Produce continues to target full-year EPS in the upper end of its 12-13 cent range.
The company said: “In the early part of the year, unusual weather conditions in southern Europe lead to temporary shortages of certain salad and vegetable lines, but given the group’s diversified business model this did not have a material impact. Our North American division experienced relatively less favourable trading conditions. While overall volumes in this division have increased on a like-for-like basis from the prior year, the result was impacted by lower pricing due to greater volumes of product in the market and weather conditions that negatively impacted quality.”
In terms of geographical results, the Europe division – consisting of France, Ireland, Italy, the Netherlands and Spain – saw revenue rise 3.8% to EUR903m, while adjusted EBITA was up 3.9% at EUR13.8m. Excluding the effect of acquisitions and divestments, earnings on a like-for-like basis climbed 5%.
Revenue fell 1.4% in the segment outside the euro zone – the Czech Republic, Poland, Scandinavia and the UK – to EUR800m, but adjusted EBITA climbed almost 12% to EUR22m. The adverse effects from the weakening of the British pound and the Swedish krona hit those results when converted into the European single currency. On a like-for-like basis excluding acquisitions, divestments and currency translations, revenue was about 2% higher.
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For the International division encompassing North America and India, revenue increased 80% to EUR471m and adjusted EBITA rose 35% to EUR6.6m. While overall volumes increased, particularly grapes, organics, potatoes and onions, the “result was impacted by lower pricing with increased volumes of product in the market and weather conditions that negatively impacted quality, particularly tomatoes, berries and potatoes”.
During the half, the Ireland and London-listed firm said it increased shareholdings in the Oppenheimer Group to 65% from 35%, which in turn completed strategic agreements with New Zealand-based T&G Global. Also, the Los Angeles headquartered Progressive Produce unit increased its scale with the purchase of Keystone Fruit Marketing