Total Produce revenues climb after Dole acquisition

Total Produce on Thursday reported an increase in annual revenue after its acquisition of a 45% stake in Dole Food Company for $300m back in February 2018.

For the year ended 31 December, the Irish fresh produce outfit achieved revenue of €5.0bn, an increase of 18% compared to the year before, though profit before tax edged 4% lower to €69.8m after a 40% drop in profits from exceptional items to €5.1m.

Total Produce said its revenue benefited from the incremental contribution of acquisitions offset in part by the negative impact on the translation to Euro of the results of foreign currency denominated operations.

On a like-for-like basis, excluding acquisitions, divestments and currency translation, total revenue was in line with the prior year with an increase in average prices offsetting a marginal decrease in volumes after markets were challenged with extended unusual weather conditions which impacted the supply and demand dynamic.

Carl McCann, chairman of Total Produce, said: "We are pleased that Total Produce has delivered continuing good results in a more challenging year. Adjusted EBITDA was up 27.6% to €133.3m. On a like-for-like basis, excluding Dole, Adjusted EBITDA was up 5.7% with adjusted fully diluted earnings per share up 0.1%. On a constant currency basis, excluding Dole, adjusted EBITDA and adjusted fully diluted earnings per share were up 8.9% and 2.7% respectively."

McCann added that the acquisition of a stake in Dole represented a "transformational" change for the company and brought together two of the world's leading fresh produce companies, with Dole enjoying an increase in revenue from $4.41bn to $4.42bn for the year.

At 31 December the London-listed company had cash and cash equivalents of €102.3m, up from €100.2m at the same point the year before, while it boosted its proposed final dividend by 2.5% to 2.5140 cent per share.

"Trading in early 2019 has been satisfactory. Total Produce is targeting an increase in the 2019 adjusted fully diluted earnings per share, including Dole in the mid-to-upper single digit range over the 2018 adjusted earnings per share of 13.50 cent," said McCann.

Total Produce's shares were up 1.86% at 164.00p at 1135 GMT.