Total Produce Says Demand From Retailers Remains Robust In COVID-19 Update
Total Produce said that although the group has experienced a reduced level of demand from the foodservice sector, demand from retailers has remained robust as consumer buying patterns shift.
The fruit and veg firm said that it is still too early to predict the full effects of COVID-19, however, it is continuing to trade satisfactorily, considering the challenging economic environment.
The company stated that the health and well-being of its people is the group’s number one priority and that the group has implemented a range of measures to protect its staff.
'Due to the dedication, commitment and hard work of its people, the group’s supply chains are functioning adequately and have remained open across all of its key markets,' the company said.
Total Produce noted that it is in a strong financial position and its cashflow also remains strong.
The group has significant cash and substantial undrawn credit lines and that it is is operating comfortably within its covenants, it said.
Given the unprecedented nature of this outbreak, the company said that it is not yet possible to determine its full impact on the group’s results for the current financial year, however, the group expects a satisfactory performance in full year 2020, although earnings are now likely to be lower than in its 2019 full year results.
However, the company highlighted that given the diverse structure of the group’s business in terms of customers, products and locations, the board believes that Total Produce is well positioned to respond to the current global challenges.
Having regard to the current Government guidelines on the holding of meetings, Total Produce said that the board has decided to postpone its AGM which was due to be held on 15 May 2020 to 28 August 2020.
All matters scheduled to be conducted at the meeting, including the approval of the final dividend, will be deferred to that date, it said.
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