Acquisitions drive massive profit growth for Total Produce in 2017
The Irish multinational faced less favorable market conditions in North America but overall its like-for-like revenue was still up 4%.
Total Produce notched a 43% increase in profit before tax last year to reach €72.5 million, bolstered by global acquisitions and bolt-on investments in Europe.
"Total Produce has delivered very positive results in 2017. Total revenue has increased by 13.9% to €4.29 billion with an 11.7% increase in adjusted earnings per share to 13.48 cent," chairman Carl McCann in the company's preliminary results announcement today.
"Total Produce is targeting continued growth in 2018, on a like-for-like basis."
More recently, the company has received attention over its planned acquisition of Dole Food Company which would effectively create the world's largest fruit and vegetable business. But Total Produce had its fair share of M&A activity in 2017 as well.
For 2017, Total Produce has highlighted the positive impact of its further interests in Oppy in North America, a strategic agreement with New Zealand-based T&G Global, an acquisition of Keystone Marketing by Californian subsidiary Progressive Produce and a 50% stake in another company from the Golden State, The Fresh Connection.
However, trading conditions for the North American division were "relatively less favourable" in some parts of the business, with lower pricing due to surplus product and weather conditions that negatively affected quality in some supplies of tomatoes, berries and potatoes.
Trading conditions overall were described as "satisfactory", with the clarification that supply shortages in certain vegetable and salad lines caused by unusual weather in the Mediterranean did not have a material impact on results, thanks to Total Produce's diversified business.
Growth would have been higher still if it weren't for a weakening of the pound sterling and the Swedish krona, which reduced the translation of results in euros.
Related story: Q&A: Total Produce chief sees "exciting times" ahead with Dole deal
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