Pretax profits and revenues up at food firm Total Produce

Fresh food distributor Total Produce has posted a strong increase in pretax profits and revenues for 2012.

Pretax profits grew 7.9 per cent, from €34.4 million to €37.1 million, and revenues rose 11.2 per cent, from €2.5 billion to €2.8 billion.

Total Produce grows, sources, imports, packs and distributes fresh fruit, vegetables and flowers, with the majority of its business in Europe.

The growth in revenues follows its increased shareholdings in Oppenheimer in North America, Frankort and Koning in the Netherlands, and Capespan in South Africa.

Chairman’s comments

Commenting on the results, Total Produce chairman Carl McCann said the group “is very pleased with its performance in 2012 having recorded strong growth of 12 per cent in adjusted earnings-per-share.

“The group is targeting adjusted earnings-per-share for 2013 in the range of 8-8.8 cent per share.

“We’re pleased to report a 12 per cent increase in the final dividend, which, together with the interim dividend, represents an overall increase of 10 per cent in the full-year dividend.”

Trading in the second half was good compared with 2011 figures, when sales were hit by the EHEC bacteria scare, which led grocers to withdraw fresh vegetables from shelves.

Currency translation also had a positive effect on results due to the strength of the Swedish krona and sterling against the euro.

On a like-for-like basis, excluding the impact of acquisitions, divestments and currency translation, revenue increased 4 per cent in 2012, due primarily to volume increases.

The company’s shares closed yesterday at 60 cent, an increase of 1.4 per cent.