Total Produce has unveiled its results for the first half of the year, with the group delivering growth in both revenue and earnings.
Revenue for the six months ended 30 June climbed 1.8 per cent year-on-year to €2.2bn, driven by the company’s Europe (Non-Eurozone) and International segments - revenue for the Europe (Eurozone) segment actually fell from €903m last year to €874m.
Adjusted EBITDA, at €56.7m, and adjusted EBITA, at €45.6m, climbed 7.4 per cent and 7.3 per cent respectively, benefiting from the incremental contribution of acquisitions in the past 18 months, offset in part by the negative impact on the translation to euro of the results of foreign currency denominated operations.
Looking back at the half-year period, Total Produce said that unusual weather patterns in Europe had an impact on supply and demand dynamics in the early months of the year, which affected production and trading.
On a like-for-like basis, excluding acquisitions, divestments and currency translation, revenue was in line with the prior year, with a marginal increase in volume offset by a small decrease in average prices.
Volume increases in the group’s North America business compensated for a marginal decrease in volumes in the European business, Total Produce noted.
‘Total Produce has delivered continued first-half growth in 2018,’ said chairman Carl McCann. ‘The group’s first-half adjusted
EBITDA increased by 7.4 per cent, and its adjusted EBITA increased by 7.3 per cent.
‘The Group continues to target full-year growth excluding the impact of the Dole transaction and the related share placing. As announced on 1 February 2018, the Group entered into an agreement to acquire a 45 per cent stake in Dole Food Company, one of the largest fresh produce companies in the world, for US$300m along with options to further increase the group’s stake. The transaction completed on 31 July 2018 having received regulatory approvals.
‘On 1 February 2018, 63m ordinary shares were issued raising US$180m to finance the Dole transaction,’ he continued. ‘The 2019 financial year will be the first full year reflecting the scale of this transformative transaction. The conclusion of the Dole transaction represents a very significant development in the group’s successful expansion strategy.’
