A reversion to more normal trading conditions in Europe has helped produce prices recover, in turn helping fresh food provider Total Produce (TOT) cultivate growth in its top line. The Irish company saw sales in its largest division, which is focused on the eurozone, rise more than 5 per cent to €1.65bn (£1.27bn) as average prices outpaced those seen in 2014 when tariffs were suppressed due to strong domestic production output and the embargo on continental goods in Russia. Turnover in its non-eurozone division, which includes the UK and Scandinavia, registered even stronger growth thanks in part to the effects of currency translations.
There was also a strong performance from the smaller, international division, which includes North America and India. The 50 per cent stake acquired in Canadian business Gambles in February also helped lift turnover by more than two-thirds last year.
A share buyback programme, started in October and concluded at the period end on 31 December, has also been earnings accretive. The group bought back just over 14m shares for €20.4m.
Prior to the results, analysts at Investec Securities expected adjusted pre-tax profit of €50.5m in 2016, leading to EPS of 10.7¢ compared with €44.8m and 10.6¢ in 2015.
| TOTAL PRODUCE (TOT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 122p | MARKET VALUE: | £388m | |
| TOUCH: | 120-123p | 12-MONTH HIGH: | 123p | LOW: 77p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 75¢* | NET DEBT: | 7% | |
| Year to 31 Dec | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | 2.53 | 34.4 | 7.1 | 1.89 |
| 2012 | 2.81 | 36.4 | 6.4 | 2.08 |
| 2013 | 3.17 | 48.2 | 9.4 | 2.27 |
| 2014 | 3.13 | 44.3 | 8.8 | 2.40 |
| 2015 | 3.45 | 46.8 | 9.1 | 2.76 |
| % change | +10 | +6 | +3 | +15 |
Ex-div: 5 May Payment: 26 May *Includes intangible assets of €191m, or 60¢ a share £1=€1.29 | ||||
