Total Produce looks to expand in Europe and North America
At the Dublin-based international fruit distribution group’s AGM held on the 23rd of May, management told shareholders that the business is “continuing to actively pursue acquisition opportunities to further expand the group, both in Europe and North America”.
Chief executive Rory Byrne said that the board views acquisitions as the primary way by which to grow the company.
Shareholders were also told that the business remains on track to meet its previously-stated adjusted earnings per share target of between 8.4c and 9.4c (that figure amounted to 8.77c in 2013) for this year.
All resolutions at the meeting were passed.
In March, Total Produce — which is the former general produce arm of Fyffes — reported a market forecast-beating set of full-year results for 2013; with total revenues (including joint-venture contributions) up by 13%, to nearly €3.2bn, pre-tax profits up by nearly 33% at €48.2m and operating profit, before exceptional items, rising by over 12% to almost €47m.
The company also slashed its net debt from €53m to €11m last year and its defined benefit pension scheme’s liability from €23.7m to €3.9m. Total shareholder dividend was also up by nearly 10% at 2.27c per share.
Analyst reaction has been positive.
In a research note Patrick Higgins of Goodbody said the broker is currently forecasting 4% earnings per share growth for the fruit company this year, which would take it to 9.1c. Goodbody also supports the hunt for more acquisitions.
“Given the relative maturity of the industry, organic growth is expected to be muted, though earnings growth should be supplemented by acquisitions.”
Source: Irish Examiner Ltd.