Record growth for Total Produce, as revenue grows by 13%
Total Produce has recorded a strong performance in 2013 as its revenue grew by 13 per cent to €3.2bn, from €2.8bn in 2012.
The strong growth was assisted by the positive contributions from acquisitions completed in recent years, offset in part by the divestment of the group’s 25 per cent interest in Capespan Group Limited (‘Capespan South Africa’), it outlined.
The results were also marginally affected by currency translation in the year primarily due to the weakening of sterling, it added.
The trading results in all of the operating divisions within the group’s core Fresh Produce Division were improved on 2012. On a like-for-like basis, excluding the impact of acquisitions, divestments and currency translation, total revenue increased by eight per cent in 2013.
Commenting on the results, Carl McCann, chairman of Total Produce, said: “Total Produce has recorded a strong performance in 2013 with total revenue increasing by 13 per cent to €3.2bn and adjusted earnings per share increasing by 10.5 per cent to 8.77 cent per share. The group’s growth is primarily driven by successful acquisitions completed in recent years including the investment in Oppenheimer in North America.
“We are also pleased to announce a 10 per cent increase in the final dividend to 1.66 cent per share. The group actively continues to pursue further investment opportunities and is targeting adjusted earnings per share for 2014 in the range of 8.4 cent to 9.4 cent per share.”
Total produce concluded a number of acquisitions in 2013 with a total investment of more than €23m.
The most significant investment being the acquisition of an initial 35 per cent interest in the Oppenheimer Group on 7 January 2013, with a further 30 per cent to be acquired in 2017.
According to the company: “This development represents the group’s first investment in the North American market where the Oppenheimer Group is a leading distribution and marketing company with 13 locations, of which nine are in the US, three are in Canada and one in Chile.”
In addition, last December, the group completed the acquisition of a further 41 per cent shareholding in Provenance Partners Limited taking the group’s interest to 50 per cent. Provenance primarily sources exotic vegetables from Africa and it expands the group’s product offering to major retailers, food service and wholesale customers in the UK.