On a like-for-like basis, revenues at Total Produce fell by 2% in the six months to 30 June, with a small decrease in volume partially offset by price increases, the group said.
The group noted that this is the first full year incorporating the Group’s share of Dole Food’s results.
Dole Food Company
Dole’s inclusion drove Total Produce to an overall turnover of €3 billion for the period, a near 40% increase on last year.
“Total Produce […] is pleased to report strong results for the first half of the year,” Carl McCann, Chairman, said.
McCann added that the group 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.
“The results of Dole are in line with expectations led by a good recovery in the Fresh Vegetable division.
“The Dole business is seasonal with a greater share of earnings recorded in the first half of the financial year.
Dole also boosted the group’s adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA), which increased by 106.6% to €117.1 million.
Exclude Dole, and TP reported Adjusted EBITA of around €42.8 million, a decline of 6% in the same period in 2018.
TP’s net debt stood at €294.3 million at the end of the period, increasing by €120 million - however, this was largely driven up by the acquisition of Dole.
European Struggles
The group said it faced a number of challenges in Europe, where the market for fresh produce is not only very competitive - but quite exposed to seasonal and weather effects.
The group’s Eurozone businesses, which include businesses in France, Ireland, Italy, the Netherlands and Spain, saw revenues decrease by 6.6%, and its adjusted EBITA fall by 25%.
For the full year, TP said that it continues to target an increase in the adjusted fully diluted EPS in the mid-to-upper single-digit range over the 2018 adjusted fully diluted EPS of 13.50 cent.
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click sign-up to subscribe to Checkout.
