Ireland's Total Produce Increases Revenue, Oppenheimer Share
Irish fresh produce provider Total Produce has announced that its revenue for 2016 increased 8.9% to €3.76 billion.
Its adjusted EBITDA went up 14.5% to €94.8 million. The company said the results were driven by acquisitions, a 4% like-for-like increase in revenue encouraged by marginal volume growth and rising average prices.
Its sales in the Eurozone (France, Ireland, Italy, the Netherlands and Spain) saw a like-for-like boost of 3%, excluding acquisitions. Its non-Eurozone markets (Czech Republic, Poland, Scandinavia and the UK) saw a similar like-for-like increase, although the fluctuating sterling meant that volumes declined marginally in the UK.
'Overall while the decision of the UK to leave the European Union has created some macro-economic uncertainties, it is not expected to have a material impact on the Group going forward,' the company commented.
Internationally, its divisions in North America and India saw revenue increase to €544 million, with an adjusted EBITA of €9 million.
Carl McCann, chairman of the company, commented, “We are pleased that Total Produce has continued to deliver very strong growth in 2016".
"The Group is continuing to actively pursue additional acquisitions and is targeting 2017 adjusted earnings per share in the range of 12.0 to 13.0 cent per share."
The group completed fresh produce acquisitions in 2016 in North America and Europe, investing €60 million, including €17 million of contingent consideration.
These deals included the acquisition of Los Angeles-based company Progressive Produce, which had sales surpassing $200 million.
Along with its 2016 results, the company announced its decision to invest €28.4 million in Canada's Oppenheimer Group, upping its share to 65% for a total of €43.4 million.
The latter company has recently entered into 'strategic agreements' with T&G Global, a grower, distributer and exporter of fresh produce headquartered in New Zealand.
John Anderson, CEO and president of Oppenheimer Group said: "We are pleased to integrate even more deeply with Total Produce with whom we have experienced a vibrant and productive relationship while operating autonomously since our partnership began in 2013".
On the New Zealand dealings, Anderson said, "T&G’s increased shareholding in [the group] facilitates growth in our apple category, as well as others, and gives us the opportunity to expand our export offerings”.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: The European Supermarket Magazine.