Ireland-based multinational Total Produce says that it's in a good position to weather the global challenges resulting from the Covid-19 pandemic, but now expects lower financial results than last year.

The company, which owns a 45% equity stake in Dole Food Company, said on Friday that while it is still too early to predict the full effects of the crisis, it is continuing to trade "satisfactorily, considering the challenging economic environment".

"Although the Group has experienced a reduced level of demand from the foodservice sector, demand from retailers has remained robust as consumer buying patterns shift," it says.

Total Produce adds that it continues to monitor the situation and is taking appropriate measures to adapt to the changing market and to ensure that supply chains remain open.

In addition, the group says it's in a "strong financial position" and that its cashflow also remains strong.

"The Group has significant cash and substantial undrawn credit lines. The Group is operating comfortably within its covenants," it says.

"Given the unprecedented nature of this outbreak, it is not yet possible to determine its full impact on the Group’s results for the current financial year, however, the Group expects satisfactory results in FY20, although earnings are now likely to be lower than in FY19.

"Given the diverse structure of the Group’s business in terms of customers, products and locations, the Board believes that Total Produce is well positioned to respond to the current global challenges."

The Group has also implemented a "range of measures" to protect its staff, it says, while also recognizing its "vital role in continuing to supply essential foodstuffs in response to the pandemic".

"Due to the dedication, commitment and hard work of its people, the Group’s supply chains are functioning adequately and have remained open across all of its key markets," it says.