Total Produce, the fresh produce company, reported a doubling in profits (EBITDA) to €117.1m in its first six months of trading. Revenues increased 39.6% to €3.05bn. Pre-tax profits increased 57.8% to €65.9m.

The stronger performance was driven by the acquisition of a 45% stake in Dole, one of the largest fresh produce companies in the world in July 2018.

For the full year, Total Produce continues to target an increase in earnings per share. Total Produce’s net debt stood at €294.3m at 30 June, mostly due to the Dole acquisition.

Once the acquisitions, divestments and currency translation are stripped out, revenues were down 2% compared to the same period last year driven by volume declines which were partially offset by price increases.

The group said that fresh produce markets, particularly in certain parts of Europe, were very competitive during the period.

It added that the poor weather in California in April to June led to less optimal growing conditions and weaker trading in the strawberry-growing operation.

There was a small drop in exported goods from the US to India and China due to higher tariffs.

Acquisition

Following European Commission approval, Total Produce completed the $300m acquisition in the US fruit and vegetable company Dole 13 months ago.

Under the terms of the deal, Total Produce can acquire a further 6% stake in Dole at any stage, while it can make a bid for total control between the second and fifth anniversary of the acquisition.