Total Produce, the Irish fresh fruit and vegetable supplier which was spun out of Fyffes, recorded a 43% increase in pre-tax profits to €72.5m for its 2017 financial year. The Dublin-based company saw operating profits increase almost 40% to €78.2m, as profit margins widened slightly from 1.5% to a still very slender 1.8%.

Sales for the year increased 14% to just under €4.3bn as a result of recent acquisitions in North America and Europe. On a like-for-like basis sales increased 4% for the year. As a result of the strong increase in profits, Total Produce announced a 10% increase in the shareholder dividend to 3.34c/share.

Last month, Total Produce announced it had reached agreement to acquire a 45% stake in US fruit and vegetable group Dole Food Company for $300m (€245m). Based in California, Dole is one of the world’s largest fresh produce companies with sales in excess of $4.5bn (€3.7bn).

As part of the agreement, Total Produce will have the option to buy the remaining shares in Dole in two years’ time for between $250m and $450m, depending on Dole’s performance.

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