Total Produce shares fall as it lowers full year guidance
Shares in Total Produce were down 5pc in early trading after the group lowered its full year guidance for 2018 and 2019 on the back of adverse weather.
In a trading update, the company said the weather impacted supply and demand, and led to lower pricing.
It is targeting 2018 full-year adjusted earnings per share (EPS) on a like-for-like basis in line with 2017, excluding the contribution of Dole Foods.
This equates to an approximately 2.3pc cut to current analysts forecasts, according to Davy Stockbrokers.
For 2019 including Dole, Total is targeting an increase in the adjusted EPS in the mid-to-upper single-digit range over the 2018 adjusted EPS, which excludes Dole.
At the lower end of the new guidance this would imply a financial year 2019 adjusted EPS of 14.15c – equating to a circa 10pc cut to current forecasts, Davy said.
Earlier this month Total announced a decline of $5m (€4.37m) in the quarterly earnings at US-based Dole Food.
Total agreed to the acquisition of 45pc of Dole for $300m (€262m) earlier this year.
Dole reported ebitda of $45.4m (€40m) for the three months to October 6. This is a decline on the $50.1m (€44m) ebitda reported for the same period in 2017.