Update sees Total Produce shares lift
Shares in fresh produce giant Total Produce were up more than 3pc in afternoon trading yesterday despite the group warning of challenging conditions.
Revenue at the company – which acquired 45pc of
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US agricultural multinational Dole Food Company last year – was down 2pc on a like-for-like basis in the six months to June 30, with a decrease in volume partially offset by an increase in price.
In the eurozone, revenues decreased by 6.6pc, amid a “challenging trading environment”, according to interim results from the group.
“Despite a sundry of sector headwinds, Total Produce has delivered a resilient half-one performance and has reiterated full-year earnings-per-share guidance,” said Roland French, analyst at Davy.
“While like-for-like revenues in the core business were down 2pc – challenged by competitive markets and international trade tensions – Dole’s ebitda was ahead of our expectations.”
Overall, the group reported a turnover of €3bn for the period, a jump of 39.6pc on last year, however this includes the company’s 45pc of Dole Food.
Meanwhile, adjusted earnings before interest, taxation, depreciation and amortisation (ebitda) increased by 106.6pc to €117.1m, again benefiting from the group’s share of Dole.
Adjusted ebita excluding Dole’s contribution declined by around 6pc to €42.8m during the period.
Total Produce’s net debt stood at €294.3m at June 30, mostly due to the Dole acquisition, while international segment revenues increased by 8.7pc to €605m, up around 2pc on a like-for-like basis.