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Acquisitions fill the fruit basket at Total Produce

The group has made various acquisitions, including one which increases its US footprint, and says it continues to look for other targets
August 30, 2016

It appears many are heeding health advice and eating their five-a-day if Total Produce 's (TOT) results are anything to go by. The fruit and veg producer registered a 5 per cent rise in like-for-like sales as a result of volume growth and higher average prices. The ripe numbers mean management is now targeting full-year earnings at the top end of the previously announced range of 10.5¢-11.5¢ per share. Total sales were even higher thanks to the €47.6m (£40.49m) -worth of acquisitions the company made, which included a 65 per cent stake in Los Angeles-based Progressive Produce.

IC TIP: Buy at 135p

Both the 'non-eurozone' division, which includes Scandinavia and the UK, and the 'eurozone' division, which includes France and Ireland, reported mid-single digit percentage improvements in turnover thanks to good trading conditions and contributions from recent acquisitions. The international division, the smallest by sales, registered the biggest increase in turnover - up 65 per cent to €261m - due in part to the aforementioned Progressive deal and a generally strong trading performance. This was only partially offset by losses linked to the disposal of a US sports nutrition business.

Analysts at Goodbody expect EPS of 11.3¢ per share in the year to December 2016 compared with 10.6¢ in 2015.

TOTAL PRODUCE (TOT)
ORD PRICE:135pMARKET VALUE:£430m
TOUCH:133-136p12-MONTH HIGH:135pLOW: 89p
DIVIDEND YIELD:2.5%PE RATIO:17
NET ASSET VALUE:68¢*NET DEBT:33%

Half-year to 30 JunTurnover (€m)Pre-tax profit (€m)Earnings per share (¢)Dividend per share (¢)
20151.7324.24.70.74
20161.9125.64.80.81
% change+10+6+2+10

Ex-div: 15 Sep

Payment: 14 Oct

*Includes intangible assets of €239m, or 75¢ a share £1=€1.17