Acquisitions and currency effects boosted first-half figures from fresh food company Total Produce (TOT). Without these, revenues would have risen 2 per cent. The eurozone business benefited from recovering prices in some markets - an important factor given the oversupply that drove prices down in 2014 - with revenues up 4.7 per cent at €833m (£607m). The non-eurozone business, which includes the UK, saw revenues rise 5.4 per cent to €767m, aided by the weakness of the euro against sterling.
This performance prompted management to announce it would target the top end of the previously announced full-year EPS range of 9.2¢ to 10.2¢. Half-year operating profits only rose 0.8 per cent to €27.2m, but this was in part due to a €2.5m exceptional gain last year on an investment in African Blue, a blueberry grower in Morocco.
Acquisitions appear to be a key part of Total's growth strategy. The company took a 50 per cent stake in Gambles Group, a Canadian fresh produce company, in February. Management said Gambles was one of eastern Canada's premier fresh produce companies, with 2014 sales of CAD$170m and over 280 staff. This was the fourth acquisition by Total Produce in North America since 2013.
Analysts at Goodbody expect full-year pre-tax profits of €44.9m, leading to EPS of 9.8¢, up from €41.9m and 9.5¢ in FY 2014.
TOTAL PRODUCE (TOT) | ||||
---|---|---|---|---|
ORD PRICE: | 91p | MARKET VALUE: | £301m | |
TOUCH: | 90-92p | 12-MONTH HIGH: | 91p | LOW: 75p |
DIVIDEND YIELD: | 9.7% | PE RATIO: | 14 | |
NET ASSET VALUE: | 74¢* | NET DEBT: | 29% |
Half-year to 30 Jun | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
---|---|---|---|---|
2014 | 1.59 | 24.2 | 4.7 | 64.0 |
2015 | 1.73 | 24.2 | 4.7 | 73.6 |
% change | +9 | - | -1 | +15 |
Ex-div: 17 Sep Payment: 16 Oct *Includes intangible assets of €168m, or 51¢ a share £1=€1.36 |