Total Produce's strong H1 performance offsets Dole losses
Ireland-based Total Produce says it enjoyed a "very strong" financial performance in the first half of the year despite the Covid-19 pandemic.
The company posted lifts in both revenue and EBITDA for the period from January through June, more than offsetting slightly negative numbers in Dole, in which Total Produce owns a 45% stake.
"We are pleased with the very strong performance in the first half of 2020 against the backdrop of the COVID-19 pandemic which has posed unprecedented challenges to the global economy," said Carl McCann, Total Produce Chairman.
Revenue and adjusted EBITDA increased by 2.0% and 0.9% respectively, demonstrating "the robustness of the Group’s business model", he said.
"Demand from retail and wholesale remained strong and helped offset reduced demand from the foodservice sector," he said.
"The Group expects revenue and adjusted EBITDA to be slightly ahead of 2019 on a full year basis with adjusted EPS slightly behind subject to the prevailing uncertainties of COVID-19. The Group intends to pay a 2020 interim dividend of 0.9129, unchanged on the prior year.
"The Group remains in a very strong financial position and continues to actively pursue the growth and expansion of the business”.
According to Total Produce's financial report, trading in Dole for the period has been "robust in the context of a challenging global environment due to COVID-19". It is also benchmarked against a strong comparative period in the Fresh Vegetable division for some produce categories.
Dole recorded revenues of US$2.2bn for the period from January through June 13, down 1.2% year-on-year. Adjusted EBITDA for the period fell by 4.7% US$153.4m.
Total Produce said Dole's Fresh Fruit division remained strong with higher banana volumes in Latin America and North America and improved pricing offset by some lower European volumes.
The results in this division benefitted from lower fuel prices but were offset by a general decrease in pineapple volumes and prices due to the impact of Covid-19 on the foodservice sector.
The overall results are behind primarily due to a decrease in Fresh Vegetables against a very strong comparative period in
However, within this division, results from packaged salad operations were ahead of prior period with
favorable volumes and pricing. Results in Chile were also impacted by timing differences in the crop and harvest cycles
of cherries as well as lower grape volumes due to the drought.