30th Aug 2018 12:38
LONDON (Alliance News) - Total Produce PLC on Thursday reported an interim profit and revenue increase, prompting the Irish company to hike its dividend.
The AIM-listed fresh produce firm increased its pretax profit in the six months ended June 20% to EUR42.3 million from EUR35.4 million the year before.
Revenue improved 1.9% to EUR2.19 billion from EUR2.15 billion the previous year.
The large profit increase stems largely from the company's acquisition of a 45% stake in American agricultural company Dole Food Co. Total Produce also noted the "incremental effect" of acquisitions in the second half of 2017 aiding the profit rise.
Adjusted earnings before interest, tax, depreciation and amortisation, a key performance metric for the company - which excludes the Dole transaction - increased 7.4% to EUR56.7 million from EUR52.8 million.
According to Total Produce, "unusual" weather patterns in Europe impacted supply and demand in the period which affected trading but was offset by increased revenue from its International business, which covers the US and India.
The company's Europe business, which is split into two - Eurozone and Non-Eurozone - had a combined revenue of EUR1.66 billion, down from EUR1.70 billion. Total Produce's International business increased revenue to EUR556.4 million from EUR471.4 million.
Total Produce increased its interim dividend 2.5% to EUR0.9129 from EUR0.8906.
Looking ahead, the company believes its February acquisition of a 45% stake in Dole represents a "very significant development" for the company and financial year 2019 will be the first full year that "reflects the scale of this transformative transaction".
Chairman Carl McCann said: "Total Produce has delivered continued first-half growth in 2018. The group continues to target full-year growth excluding the impact of the Dole transaction and the related share placing."
Shares in Total Produce were up 5.0% at 199.00 pence each Thursday.
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