Turners & Growers, which owns ENZA International, has issued a media release claiming the value of the group is not being reflected by the price of its shares.
This is illustrated in the company’s current share price of around NZ$1.60 (US$1.25) being significantly lower than the net tangible asset backing per share of NZ$2.50, stated the media release.
Turners & Growers attributed part of the undervaluation of its stock to shareholders and investors not appreciating the potential value of the company’s investment in fresh produce growing operations and proprietary fruit varietals.
As these growing operations mature the increase in volume, and the profits associated, will be significant, stated the media release.
Profits from global and domestic plantings of proprietary fruits, such as Jazz apples will increase the earnings ENZA contributes to the total earnings of the group over the coming years.
The group stated the global Jazz harvest was expected to increase from around 2.8m tray carton equivalents (TCE) in 2010 to over 6.5m TCE in 2015. This projected increase is based on average growing conditions and does not take into account extreme weather events.
The vast majority of this production will come from independent growers licensed to grow the variety, stated the media release.
There are currently 5.3m Jazz trees planted globally, with that figure expected to increase to 5.7m by 2012. The projected increase in Jazz apple volumes over the coming years is expected to come mainly from the maturation of existing trees.
Turners & Growers also predicts future profits to be generated from the sales of its proprietary kiwifruit varieties ENZA Red, ENZA Gold and ENZA Green.
No comments yet