Total Produce battled through unfavourable economic conditions and difficult exchange rates to significantly increase its revenue in 2008, according to the company’s results released today.
Total revenue for 2008 grew to €2.52 billion (£2.24bn), an increase year on year of 3.5 per cent due primarily to contributions from acquisitions in the Netherlands and contributions from bolt-on acquisitions made during the second half of 2007 and in 2008.
These increases were offset by the lower translation value of non-euro revenues due to the strengthening of the euro during 2008. On a constant currency basis, revenues for the period have grown by 7.8 per cent year on year. Revenue in the group’s produce division grew by 3.5 per cent and by 2.5 per cent in its consumer and healthfood division.
The company announced a 10.1 per cent loss of profit before tax, however this was largely due to the closure costs of a manufacturing facility in Ireland and a number of produce locations in the UK, the net loss incurred on revaluation of property and the impairment of an equity investment due to currency.
But adjusted profit before tax amounted to €40.8 million (£36.3m), a 4.9 per cent increase on the 2007 figure of €38.9m. The growth in adjusted profit before tax was nine per cent, excluding the impact of the translation of profits from non-euro currencies at the average exchange rates for 2008 compared to 2007. Profit before tax amounted to €29.8m compared to €33.2m in 2007 due to exceptional items of €4.6m incurred in 2008.
Carl McCann, chairman of Total Produce, said: “We are pleased that Total Produce achieved satisfactory earnings growth in 2008. While the group may not match those earnings in a tougher economic environment in 2009, Total Produce is targeting a very solid earnings performance for the year. The group is focused on expanding the business, both organically and by acquisition.”
Adjusted earnings before interest, tax and amortisation (EBITA) increased by €2.9m (a 6.6 per cent rise) to €46.5m. The full-year outcome for the group was described as 'satisfactory' given the unfavourable trading conditions experienced in the second half of the year and the relative strengthening of the euro which had an impact on the translation of the non-euro results.
The group completed the acquisition of a 60 per cent interest in Dutch companies Haluco and Nedalpa in August and expects these companies to add around €275m per annum to group’s revenue.
