Total Produce Sees Revenue Up Two Fifths, Boosted By Dole Acquisition
Fresh produce firm Total Produce has seen its half-year revenue rise 39.6% to more than €3 billion, boosted by the acquisition of a 45% stake in Dole Food Company last year, however European revenues were down.
The group reported revenue of €3.051 billion for the half year to 30 June, while adjusted EBITDA was up 106.6% to €117.1 million. Adjusted profit before tax rose by 57.8% to €65.9 million.
In its Eurozone business, incorporating France, Ireland, Italy, the Netherlands and Spain, revenue decreased by 6.6% to €816 million. The group said that trading conditions were 'challenging' in the segment, particularly in the Netherlands, where the market remains 'very competitive'.
Its Non-Eurozone segment, which includes the Czech Republic, Poland, Scandinavia and the UK, saw revenue down 1.9% to €766 million, largely due to foreign exchange translation, as well as the cessation of a small distribution business late last year.
The group's International arm saw revenue rise by 8.7% to €605 million, while its Dole business posted like-for-like sales 'in line' with the comparable period last year.
'In Line With Expectations'
"Total Produce recorded a 71.4% increase in adjusted fully diluted EPS in the first half year, excluding the impact of the new lease accounting standard, due primarily to the contribution of Dole," commented Carl McCann, the group's chairman.
"This was in turn slightly offset by certain Eurozone markets. The results of Dole are in line with expectations led by a good recovery in the Fresh Vegetables division. The Dole business is seasonal with the greater share of earnings recorded in the first half of the financial year."
The group completed the acquisition of the Dole stake on 31 July 2018. This is the first full period incorporating the Dole share.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.