Total Produce has announced a turnaround in its business after cold weather hit the company hard in the early months of 2010.
The group recorded first-half pre-tax profits of €21.7 billion, up 5.5 per cent on the €20.6 million it gained during the same period a year earlier.
Revenues rose 1.7 per cent from €1.31bn to €1.33bn including the group's share of joint ventures. Group revenue rose 2.3 per cent from €1.17bn to €1.20bn.
Adjusted pre-tax profits reached €25.3m, up 3.8 per cent on the €24.3m for the same period a year earlier.
Revenue increased by 3.2 per cent to €1.29bn with the strength of Swedish krona against sterling, which led to higher translation values of non-euro revenues, proving key. Revenue was up 0.7 per cent on a constant currency basis, while like-for-like volumes were marginally ahead with average selling prices unchanged.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) totalled €27.1m, up 2.9 per cent on the back of currency fluctuations and a strong performance in its core fresh produce division. Adjusted EBITDA in the division grew 7.8 per cent to €27.3million.
The company’s health foods and consumer goods distribution business dragged down revenues with fresh produce trade proving positive despite poor weather conditions throughout Europe in the first quarter.
Company chairman Carl McCann said: "After a slow start to the year due to unusually cold weather throughout Europe, demand for the group’s produce recovered with the group also benefiting from favourable currency translation movements.
"Total Produce is pleased to confirm that, assuming current trading conditions continue, it is now targeting adjusted earnings per share towards the upper end of its annual target range of 5.5 to 6.5 cent per share.”
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