Leading European fresh produce company Total Produce has weathered tough commercial conditions over the past year to post net profit of €27.74m for 2011, up 10 per cent on the previous 12 months and on the back of a 2.8 per cent decrease in annual group revenue to €2.53m.
The company underlined in particular the adverse impact of last year's E coli crisis in Europe, with annual results for its business operations in the euro zone showing that sales there fell 6 per cent year-on-year to €1.21m.
Euro-zone earnings before the deduction of interest, tax and amortisation expenses came in at €19.83m, 29.1 per cent lower than the €27.95m achieved in 2010.
However, the company said the result for the year was 'satisfactory' when allowing for the impact of the unusual trading conditions for its fresh produce division, particularly in continental and eastern Europe from late May onwards, due to the E coli scare.
'The effects lasted longer than anticipated with the market slow to recover,' the group said in a statement.
Commenting on the overall results, Total Produce chairman Carl McCann said the Group had performed 'satisfactorily' despite the challenging conditions associated with the E coli outbreak in May 2011 and a subsequent decline in consumer confidence.
'Total Produce has delivered a solid performance in 2011 with a 5.8 per cent increase in adjusted earnings per share to 7.24 cent per share,' he said.
Total Produce continued to be active in terms of its mergers and acquisitions activity, concluding a number of new purchases primarily in the second half of the year for a total investment of almost €20m, including increasing its shareholding in South African fresh produce company Capespan Group.
'With the continued benefit of a good geographic spread of activities across Europe and the full year impact of acquisitions completed in second half of 2011, the group is targeting adjusted earnings per share for 2012 in the range of 7.0 to 8.0 cent per share,' McCann added.
