27th Aug 2020 14:46
(Alliance News) - Total Produce PLC on Thursday posted a fall in profits for the first half of 2020 as it highlighted challenges to the fresh produce industry resulting from the Covid-19 pandemic but said its performance was strong against the backdrop of global uncertainty.
Shares in the Dublin-based fresh food producer were trading 12% higher at 104.00 pence each on Thursday afternoon in London.
For the six months ended June 30, Total Produce posted pretax profit of EUR42.6 million, down 23% from EUR55.3 million the year prior. This was despite revenue rising 5.6% year-on-year to EUR3.22 billion from EUR3.05 billion.
Adjusted fully diluted earnings per share was down 3.6% to 9.45 cents.
The increase in revenue was supported by "robust" retail and wholesale demand which offset reduced levels of activity in the food service sector. The company added that it benefited from the contribution of bolt-on acquisitions made in the past twelve months.
However, profit was hurt by exceptional costs, with operating profit before exceptional items at EUR52.9 million.
An interim dividend of 0.9129 euro cents was declared, unchanged from the year prior.
Looking ahead, Chair Carl McCann said: "The group expects revenue and adjusted earnings before interest, tax, depreciation, and amortization 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 remains in a very strong financial position and continues to actively pursue the growth and expansion of the business."
Adjusted Ebitda for 2019 was EUR117.1 million, Adjusted fully diluted EPS was 9.80 cents.
As at the end of June, Total Produce had cash of EUR131.5 million.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
TOT.L