Acquisitions, eurozone sales boost Total Produce profitability in H1

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Acquisitions, eurozone sales boost Total Produce profitability in H1

Irish multinational Total Produce notched a 10.2% rise in earnings per share in the first half of 2013, driven by a strong performance in Europe and the effects of acquisitions. Total Produce small

The company posted an adjusted EBITA (Earnings before interest, tax and amortization) of €31.39 million (US$41.32 million) for the period, representing a year-on-year rise of 9.77%, the majority of which is explained by improved performance for its fresh produce division in the eurozone.

Chairman Carl McCann attributed the eurozone success to improved trading in continental Europe and the contribution of acquisitions made in the previous 15 months; these include a 50% stake in Dutch importer Frankort & Koning Group (F&K) and the purchase of 70% of Total Produce Indigo in southern France, both in 2012.

A mix of volume and average price increases, new product lines and positive currency translations helped raise EBITA by 3.5% in Total Produce's Northern Europe operations. In the U.K. however, EBITA fell by almost a quarter due to currency weakening and the late onset of spring with cold conditions that continued into April.

The acquisition of a 35% interest in North America's Oppenheimer Group helped international revenue more than double, and the corresponding rise in EBITA was 4.4%. International results were offset by the impact of Total Produce's divestment in Capespan South Africa in April.

The company's total revenue for the period stood at €1.66 billion (US$2.19 billion), representing an 18.8% jump, but McCann said fresh produce revenue would have been 11% higher if it weren't for the impacts of acquisitions, divestments and currency translation.

"Total Produce has continued to deliver good results in 2013 with an 18.8% increase in revenues and a 10.2% increase in earnings. The Group’s strong performance is driven by its overseas expansion programme," chairman Carl McCann.




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