Total Produce H1 sales decline on falling prices, tough comps

2nd Sep 2014 08:33

Fruit and vegetables provider Total Produce said it delivered a "robust" performance in the first half with revenues and profits falling against strong comparatives.Revenues totalled €1.59bn in the six months to 30 June, down 4.5% on the year before, with markets conditions "less favourable" than the year before.As were as more adverse currency movements this year, figures from last year included the results of the South African fruit business Capescan prior to its €21.7m sale in April 2013.On a like-for-like basis, first-half revenues were only 1.7% lower as volume growth was offset by average price declines. Total Produce explained that a warm spring caused growing seasons of some products to being earlier than usual, and higher production and excess supply had a downward effect on prices.Adjusted earnings before interest, tax and amortisation fell by 3.7% to €30.2m. However, due to a fair value uplift in an equity interest leading to an exceptional gain of €2.5m, pre-tax profit rose 5.7% to €24.2m. Adjusted earnings per share were 0.4% higher at 4.86 cents."Total Produce has recorded a robust performance in the first half of 2014 when measured against a particularly strong comparative period in 2013," said chairman Carl McCann. "The group is maintaining its full-year adjusted earnings per share guidance of 8.40 to 9.40 cent per share."The interim dividend was lifted by 5% o 0.64 cents per share.BC