"Total Produce has achieved a strong result over the first half of the year," according to Carl McCann, Chairman. "The group has continued its international expansion with a number of transactions in North America." Total Produce increase its share in the American Oppenheimer Group (Oppy) from 35% to 65%. Oppy in turn closed a new strategic agreement with the New Zealand T&G Global. "Total Produce's main Progressive Produce office has increased its scale with the takeover of Keystone Fruit Marketing. The group is actively looking for further investment opportunities."
The company is satisfied with the market situation in the first months of the year. The shortages that were created in lettuce and vegetables due to extreme weather in Southern Europe at the start of the year, were absorbed by the group due to the diversified business model. In North America this impact wasn't felt. On a comparable basis the volume of this division rose compared to the previous year. Due to the larger volume the prices went down slightly, which can be seen in the results. The weather also had a negative influence on the quality.
Eurozone result increases due to higher price
The turnover of this segment, which includes the activities in France, Ireland, the Netherlands and Spain, rose by 3.8% to 903 million Euro compared to 870 million Euro a year before in the same period. The general market conditions were favourable despite the challenges in the Netherlands. The result is also partially influenced by a subsidiary which will be taken as a joint venture in the books. Comparably, the turnover was 5% higher. This was mainly the result of a better price and to a lesser extent, a larger volume.
The company is satisfied with the market situation in the first months of the year. The shortages that were created in lettuce and vegetables due to extreme weather in Southern Europe at the start of the year, were absorbed by the group due to the diversified business model. In North America this impact wasn't felt. On a comparable basis the volume of this division rose compared to the previous year. Due to the larger volume the prices went down slightly, which can be seen in the results. The weather also had a negative influence on the quality.
Eurozone result increases due to higher price
The turnover of this segment, which includes the activities in France, Ireland, the Netherlands and Spain, rose by 3.8% to 903 million Euro compared to 870 million Euro a year before in the same period. The general market conditions were favourable despite the challenges in the Netherlands. The result is also partially influenced by a subsidiary which will be taken as a joint venture in the books. Comparably, the turnover was 5% higher. This was mainly the result of a better price and to a lesser extent, a larger volume.
Non-eurozone: exchange rate determines result
Czechia, Poland, Scandinavia and the United Kingdom form the segment outside of the eurozone. The turnover in this segment decreased by 1.4% to 800 million euro (2016: 811 million Euro). The EBITDA rose by 11.7% to 22.1 million Euro as a result of a higher average price and the contribution of a number of bolt-on acquisitions. The exchange rate pushed the figures again, in particular the weakened British pound (-9.8%) and Swedish crown (-3.3%). Comparably, the turnover was around 2% higher than the previous year.
International: challenging market with price pressure
The rest of the world, in particular North America and India, form the International segment. The turnover rose by 80% to 471 million Euro due to an extra contribution by the takeovers. The rising increase due to takeovers was partially counteracted by the challenging market situation in North America. Although the volumes rose compared to last year, there was a larger supply of grapes, organic products, potatoes and onions in particular, however the prices were under pressure. The weather also had a negative influence of the quality of tomatoes, soft fruit and potatoes.