A drop in winter orange production is one of the explanations Asian Citrus Holdings has offered shareholders for a projected decrease in core net profit over the six-month period ending December 31 2012.
In a trading update released yesterday (January 22), the listed company suggested turnover and shareholders profit for the second half of 2012 was unlikely to exceed the comparative figure for the corresponding period in 2011.
One of the key factors outlined for the performance was a 26.9 per cent decrease inwinter orange production at the group's Hepu plantation.
The winter crop was plagued by unstable weather and persistent rainfall, which not only led to a reduction in output but also required a higher volume of fertilisers and pesticides to be used.
The company also pointed to a lower than average selling price of pineapple juice concentrates and higher labour costs as key factors contributing to its performance.
The information was based on a preliminary assessment, with the group’s interim results for the six-month period expected to be released in February.
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