Friday 15 December 2017

Positive start to 2017 for fruit and veg company Total Produce

Total Produce chairman Carl McCann
Total Produce chairman Carl McCann
Ellie Donnelly

Ellie Donnelly

Total Produce, Europe’s biggest fresh produce distributor, has said that it is raising its full year adjusted earnings per share target into the 13.0 cent range.

The Fyffes spin-off said that the move is based on “satisfactory trading” for the first four months of the year.

The move follows an announcement from the company in March that it had purchased a further 30pc of the Oppenheimer Group for a consideration of €28.4m, bringing its total share of the company to 65pc.

Headquartered in Vancouver, Canada and with sales of almost €720m, Oppenheimer operates from throughout North America providing fresh fruit and vegetables to retailers, wholesalers and food services customers.

Read more: Total Produce targets €1bn deal valuation

As part of a wider transaction, Oppenheimer had also signed a deal with New Zealand-based T&G Global, the country's largest grower, packer, distributor, marketer and exporter of fresh produce, in terms of volume.

Total Produce has also been helped by rising prices for vegetables in Europe.

In March this year prices for vegetables increased an average of 4.7pc across the EU28, while fruit price inflation increased 4.4pc, according to a Davy analyst.

Read more: Total Produce ups Canadian firm stake as profits surge

Subject to shareholder approval, Total Produce said that a final dividend of 2.2297 cent per share will be paid on May 26 this year, representing a 10pc increase on the previous year.

The company said that it is in a strong financial position and that it is continuing to pursue attractive acquisition opportunities to further expand the group.

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