New Zealand-based fresh fruit marketer Turners & Growers (T&G) has announced that it suffered a 39 per cent fall in earnings during the opening half of the year, down to NZ$10.2m.
According to the group, which is controlled by BayWa in Germany, profitability had been negatively impacted by several one-off events during the six-month period.
Revenue for the period ended 30 June also fell, down 7.6 per cent to NZ$341m, the group announced.
'The group's profitability has been adversely affected by a number of isolated one-off events,' noted chairman Klaus Lutz. 'Trading for the remainder of the year is expected to be consistent with last year's performance.'
T&G's pipfruit division improved its operating profit by 22 per cent year-on-year, with increased volumes of New Zealand apples heading to markets with favourable pricing in Asia. Meanwhile, the group reported that its flagship varieties Jazz and Envy were gaining market share in Europe and the UK, while the US market was strong 'across all varieties'.
In addition, T&G has directed most of its capital expenditure towards the pipfruit category by upgrading packing facilities, expanding coolstore space and acquiring Apollo Apples, which, when approved, will add 20 per cent more export volume.
However, the group's International Produce segment had a tougher time, with supply shortages in most regions leading to a 13 per cent drop in revenue.
Spring frosts in Chile hit stonefruit and grape volumes, a poor growing season in Australia impacted on its stonefruit volumes, and worldwide overproduction reduced export opportunities for Peruvian asparagus, T&G said.
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