European market recovery boosts Total Produce's bottom line
A rise in average prices in Europe and two North American acquisitions helped Irish multinational Total Produce record an uptick in revenue and profit for 2015.
In its preliminary results released today, the company announced revenue was up 10.4% for the year at €3.45 billion, while profit before tax was up 5.6% reaching €46.8 million.
Total Produce highlighted strong European domestic production and the Russian ban affected prices in the old continent in 2014, but the situation improved with "more normalised trading conditions" last year.
The Non-Eurozone segment which includes the U.K., Scandinavia, Poland and the Czech Republic is Total Produce's biggest source of profits, with EBITA up 14.4% for the period at €38.6 million.
The Eurozone segment had a 10% higher EBITA at €22.2 million, while the international business - including North America and India - had a 19.6% rise in profit to €3.4 million.
"In February 2015, the Group increased its presence in North America with a 50% investment in Gambles, a fresh produce company in Toronto with reported sales of CAD $170m," chairman Carl McCann said in a release.
"Post year-end, the Group has continued its growth in North America with the acquisition of a 65% interest in Progressive Produce based in Los Angeles with annual sales of US $200m.
"We are pleased to propose a 15.0% increase in the final dividend to 2.027 cent per share. The Group continues to actively pursue further investment opportunities and is targeting adjusted earnings per share for 2016 in the range of 10.5 to 11.5 cent per share."