Six months ago we warned that Total Produce's (TOT) full-year results might be soured by the knock-on effects of Russian sanctions on fruit and vegetable imports from the EU. Our 'short-term sell' call proved on the money. Putin's geopolitical gambles, combined with an earlier than normal Spring growing season in Europe, led to over-supply, driving prices down. The result was a 5 per cent decline in like-for-like sales within Total's Eurozone business, which pushed divisional trading profit down 13 per cent to €20.2m.
Outside the bloc business was slightly peachier. In the UK and northern Europe like-for-like revenues came in flat as higher volumes offset lower prices. However, acquisitions drove reported sales up 3 per cent to €1.40bn, pushing trading profits up 8 per cent to €32.2m. The net outcome at group level was a 3 per cent dip in trading profit to €56.7m.
Growth through acquisitions is a central plank of Total's long-term strategy. Last year it spent €22m snapping up businesses across Europe and North America.
Broker Goodbody is likely to upgrade its 2015 adjusted EPS forecast by 6 per cent to 9.8¢, reflecting a stronger than expected 2014 (EPS of 9.5¢) and a change in the way the figure is calculated.
| TOTAL PRODUCE (TOT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 80p | MARKET VALUE: | £265m | |
| TOUCH: | 79-81p | 12-MONTH HIGH: | 100p | LOW: 75p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 66¢* | NET DEBT: | 6% | |
| Year to 31 Dec | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010 | 2.34 | 33.6 | 5.3 | 1.78 |
| 2011 | 2.28 | 34.4 | 7.1 | 1.89 |
| 2012 | 2.43 | 36.4 | 6.4 | 2.08 |
| 2013 | 2.64 | 48.2 | 9.4 | 2.27 |
| 2014 | 2.67 | 44.3 | 8.8 | 2.4 |
| % change | +1 | -8 | -6 | +6 |
Ex-div: 30 Apr Payment: 22 May £1=€1.38 *Includes intangible assets of €162.6m or 49¢ a share | ||||
