Fruit marketer and distributor Turners and Growers (T&G) has announced a positive set of results for the first half of 2010, with profit increasing and the group forecasting an improved year-end result.
For the six months ended 30 June, pre-tax profit at the company hit NZ$10.1m (US$7.2m, €5.6m), an increase of NZ$1.5m (US$1.1m, €0.8m) on the same period last year.
Profit was impacted by the New Zealand government's budget announcement that removed the ability to depreciate buildings for tax purposes, with T&G holding a number of properties, leading to a one-off, non-cash accounting entry to tax expense and deferred tax of NZ$4.9m (US$3.5m, €2.7m).
Group highlights during the first half included a strong domestic market performance, the positive impact on T&G's imports division of the high New Zealand dollar, and expansion of the transport division into the South Island.
'While the fresh produce industry has been impacted by events outside our control, at this stage we expect the year-end forecast, excluding one-off tax adjustments, to be up on last year,' said T&G chairman Tony Gibbs. 'The large hail event in the Hawkes Bay at the beginning of the season severely affected Enza's pipfruit orchards and considerably reduced the national crop available to export. Fortunately our costs were covered by hail insurance and the impact on profit was not significant.'
Mr Gibbs also highlighted the impact of the appreciating dollar on New Zealand exporters, the success of Delica and Status Produce's glasshouse tomato business, and the growth of Kerifresh.
T&G said that it would continue its campaign to ensure that new kiwifruit varieties can be exported without restrictions, while the company added that it was 'disappointed but not surprised' that Australia had opted to appeal the recent World Trade Organisation ruling against Australia's ban on New Zealand apples.
No comments yet