EastPack has announced a NZ$7.5m profit before tax for the financial year ending 31 December 2012.
New Zealand’s largest post harvest kiwifruit supplier, following a merger with Satara in March this year, EastPack also reduced packing costs to its growers by an average of 25¢ per tray over the same 12 month period.
EastPack chairman, Ray Sharp, said the company was the first post harvest supplier to report an orchard gate return above NZ$5 per tray on green varieties for the 2012 season.
“Overall 2012 was another very successful, albeit challenging financial year for EastPack,” Sharp said.
“Given the reduction in volume as a result of Psa and our reduced packing prices to growers this was an extremely pleasing result.
“To adjust our costs for lower volumes, our focus was on reducing packing costs and waste, under our ‘Growing Excellence’ programme.”
EastPack prepared 18.8m trays for export in 2012, down on the 21.3m in 2011.
As a result, the company’s overall revenue fell from NZ$81m in 2011 to NZ$67.5m in 2012.
“Our marketing programme to more aggressively pursue new crop volume for the 2012 season saw 2.3m trays of new volume produced, to replace some of the 3.5m GOLD trays lost due to Psa,” Sharp said.
“This successful strategy ensured we maintained our valuable staffing and operating efficiency - which give us a competitive advantage - as opposed to the alternative of retrenchment and redundancies.”
EastPack chief executive Tony Hawken said the Satara merger strengthened the company’s position amidst an industry wide “volume crisis.”
“We believe it is the best pathway to ensuring that we can deliver sustainable low packing prices and good profitability in the current very competitive industry environment,” Hawken said.
EastPack is expected to pack 25m trays this season across its six packhouses in Te Puke, Opotiki, Edgecumbe, Katikati and Whangarei.
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