Fruit distributor Total Produce has reported a drop of 10% in pre-tax profits for 2008, hurt by the closure costs of a number of UK and Ireland manufacturing plants.
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Pre-tax profit for the year was down to EUR29.8m (US$37.3m) from EUR33.2m reported in the previous year. The company said it remains cautious for its prospects in 2009.
Total Produce incurred an exceptional charge of EUR4.6m connected to the closure costs of a manufacturing plant in Ireland during the year and the closure of a number of produce locations in the UK.
Revenues for the year rose by 3.5% to EUR2.5bn, boosted by contributions from the acquisitions of Haluco and Nedalpac in the Netherlands and bolt-on acquisitions made during the second half of 2007 and in 2008.
Operating profit for the group dropped slightly to EUR35.3m in 2008 compared to EUR37.6m in 2007 due to exceptional items of EUR4.6m.
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By GlobalDataAdjusted EBITA was up EUR2.9m to EUR46.5m for the period.
Chairman Carl McCann said: “We are pleased that Total Produce achieved satisfactory earnings growth in 2008. While the group may not match those earnings in a tougher economic environment in 2009, Total Produce is targeting a very solid earnings performance for the year. The group is focused on expanding the business, both organically and by acquisition.”
The company is recommending a final dividend of EUR1.15 per share, subject to shareholder approval at its forthcoming AGM. Total dividends for 2008 will amount to EUR1.69 per share, up 2.4% on the total 2007 dividend.
“The group is targeting a very solid earnings performance for 2009 with adjusted earnings per share in the range of 5.5 to 6.5 cent per share on 2009 target revenues of EUR2.6bn,” McCann added.
