A range of issues affected the net profit of New Zealand horticulture giant Turners & Growers, but the end result was a 0.7 per cent increase in 2008 to NZ$14.1m (US$7.25m).
In particular, stronger export revenues were countered by a drop in domestic market income. Total revenue rose 10.7 per cent to NZ$570.1m (US$293.2m).
That rise in total revenues was largely due to a full trading year from export arm Delica and the introduction last March of fruit grower Kerifresh, reported NZPA.
Turners & Growers was “trading adequately” according to chairman Tony Gibbs, and it had not been materially affected so far by the economic downturn.
“The board believes the company is robust and will continue to trade profitably into the future,” he said.
The 2008 result included an NZ$8m gain on the purchase of Kerifresh, as well as a NZ$4.2m write-down of T&G’s pipfruit exporter Enza’s investment in Worldwide Fruit, and a NZ$2.2m loss since March from Kerifresh trading.
An upturn in profits marked the end of 2008, said Mr Gibbs, after problems caused by pre-season frosts.
“The positive finish was assisted by a weakening New Zealand dollar and strong in-market prices,” he said.
“Lower volumes adversely impacted the profitability of coolstores and packhouses, however this was more than offset by increased returns from pipfruit exports.”
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