Profit drop due to 'one offs' says Turner and Growers
Turners & Growers has reported a 39 per cent drop in net profit for the half year to June 30 compared to a year ago.
The net profit of $10.2m was achieved on revenue of $341m which was nearly 8 per cent lower.
Last year's half year result was boosted by $1.2m in property sales, the company said in a statement to the NZX today.
Profits had been been impacted by ''a number of isolated one-off events'', the company said.
''Trading for the remainder of the year is expected to be consistent with last year's performance.''
Increased apple volumes and favourable apple prices for apples in Asia had helped boost pipfruit operating profits by 22 per cent.
In Europe the group's flagship varieties, JazzTM and EnvyTM were attracting a premium and were gaining market share.
Turners & Growers said it had upgrading packing facilities, expanding coolstore space. The company is also in the process of buying Apollo Apples, with the deal awaiting Overseas Investment Office approval. Apollo Apples is a large New Zealand-based growing, packing and exporting company with over 500 hectares of fruit producing orchards, which will add 20 per cent more export volume to the Pipfruit division.
The high quality apple crop for export led to an all-time low amount of fruit available for processing by the Processed Foods division.
Apple volumes for processing dropped by 40 per cent on the prior year and well below the volume needed to cover the fixed costs for running ENZAFoods' two plants.
The international produce division had a difficult half year with supply shortages in most of the regions leading to a 13 per cent drop in revenue.
But the New Zealand Produce division improved its operating profit by $700,000, finishing close to break even for the first six months.
The prolonged summer in New Zealand meant tomato volumes were high which in turn drove down prices. Though this was offset by higher sales volumes, reduced energy costs and diversification into specialty tomatoes.