Total Produce's Acquisition Of Dole Bears Fruit, HY Revenues Up 1.8%
Fresh produce company Total Produce plc has reported that its revenues for the first half of 2018 increased by 1.8% to €2.2 billion.
The group, that recently acquired a large stake in Dole Food Company, also reported that its adjusted EBITDA shot up by 7.4% to €56.7 million.
Company chairman, Carl McCann, added that it “continues to target full-year growth excluding the impact of the Dole transaction and the related share placing”.
McCann said that its acquisition of Dole, worth $300 million, has an option to further increase the Total Produce’s stake in the firm. The transaction completed on 31 July 2018 having received regulatory approvals.
He confirmed that 63 million ordinary shares were issued raising $180 million to finance the Dole transaction.
“The 2019 financial year will be the first full year reflecting the scale of this transformative transaction. The conclusion of the Dole transaction represents a very significant development in the Group’s successful expansion strategy,” McCann said.
“An interim dividend of 0.9129 cents per share will be paid on 12 October 2018 representing a 2.5% increase on last year.”
Revenues in its Eurozone businesses, including Ireland, fell by 3.2% to €874 million, but adjusted EBITA increased by 8.2% to just under €15 million.
Overall trading conditions were challenging in certain countries, the group said, as unusual weather patterns had an impact on supply and demand. However, this was offset by good performances from its Southern Europe units.
Excluding the effect of acquisitions and divestments, revenue on a like-for-like basis was approximately 2% behind the prior year, primarily due to volume offset by a marginal price increase.
Total Produce recently announced that Michael Meghan, a retired senior corporate lawyer who spent most of his career with Arthur Cox, will join its Board as a non-executive director, taking effect from 1 July 2018.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.