T&G Global's board of directors has advised its group profit for the 2021 financial year (FY21), according to statutory accounts, is now forecast to be between NZ$4 - NZ$10m
The figure is significantly less compared to FY20, in which the group reported a NZ$16.6m profit margin.
In a statement on behalf of the T&G board of directors, group chief executive Gareth Edgecombe said the disappointing outlook reflected updated forecasts in the results of a number of T&G business units, highlighting in particular:
“Due to shipping challenges and associated impacts on pricing and costs, especially in the Northern Hemisphere and Asia,” said Edgecombe.
“Due primarily to the aforementioned shipping delays, market access challenges, and supply shortages, particularly from the US and Australia.”
“Due primarily to the impact of Covid-19. This has affected labour in terms of availability and costs, the pricing of seasonal produce lines, restrictions on physical openings of independent retailers and foodservice, and shipping delays for imported produce,” he added.
Edgecombe said T&G would continue to adapt to the challenges of the current operating environment, and reiterated the board remains confident the resulting operational efficiencies will, along with the growing revenue streams from its genetics business, result in significant improvements in performance over the next year.