27 Mar 2020 07:00
Stock Exchange Announcement
TOTAL PRODUCE PLC
COVID-19 UPDATE
Total Produce plc ("Total Produce" or the "Group"), the leading international fresh produce company, today provides the following update regarding COVID-19.
Since Total Produce announced its preliminary results on 5 March 2020, the spread of COVID-19 is having an increasingly significant impact on the global economy.
While it is still too early to predict the full effects of COVID-19, Total Produce is continuing to trade satisfactorily, considering the challenging economic environment.
The health and well-being of its people is the Group's number one priority. The Group has implemented a range of measures to protect its staff. At the same time, the Group recognises its vital role in continuing to supply essential foodstuffs in response to the pandemic. Due to the dedication, commitment and hard work of its people, the Group's supply chains are functioning adequately and have remained open across all of its key markets.
Although the Group has experienced a reduced level of demand from the foodservice sector, demand from retailers has remained robust as consumer buying patterns shift. The Group continues to monitor the situation and is taking appropriate measures to adapt to the changing market and to ensure that supply chains remain open.
Total Produce is in a strong financial position and its cashflow also remains strong. The Group has significant cash and substantial undrawn credit lines. The Group is operating comfortably within its covenants.
Given the unprecedented nature of this outbreak, it is not yet possible to determine its full impact on the Group's results for the current financial year, however, the Group expects satisfactory results in FY20, although earnings are now likely to be lower than in FY19. Given the diverse structure of the Group's business in terms of customers, products and locations, the Board believes that Total Produce is well positioned to respond to the current global challenges.
Having regard to the current Government guidelines on the holding of meetings, the Board has decided to postpone the AGM which was due to be held on 15 May 2020 to 28 August 2020. All matters scheduled to be conducted at the meeting, including the approval of the final dividend, will be deferred to that date.
27 March 2020
For further information, please contact:
Brian Bell, Wilson Hartnell PR Tel: +353-1-669 0030
Ivan Murphy, Davy Corporate Finance Tel: +353-1-679 6363