Zespri has dropped a NZ$13.9m accounting provision, bolstering the single desk marketer’s profit guidance for the 12 months to 31 March, according to the New Zealand Herald.
The provision related to the company’s Chinese subsidiary, ZMCC, which was convicted of smuggling charges in 2013. A Chinese court consequently ordered Zespri to repay NZ$10m in 'illegal gains' from customs fraud.
Zespri chief financial officer Dave Hazlehurst told the Herald the NZ$10m had been fully reimbursed by its former Chinese importer Shanghai Neuhof.
“Our assessment is that all issues relating to Zespri's subsidiary in China, ZMCC, have now been resolved with the Shanghai Court, therefore there is no justification for Zespri to hold the accounting provision,' a Zespri spokesperson told the Herald.
The move has allowed Zespri to adjust its 2015/16 profit guidance range to between NZ$32m and NZ$35m, up from its previous forecast of between NZ$19m and NZ$22m issued in February.
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