In South Africa, the Capespan Group has recorded a dramatic increase in revenue during the first half (H1) of 2008 despite its export volumes declining by just under 5 per cent.
Capespan said that its revenue increased by 16.7 per cent from R890m (€75.3m) to R1.04bn (€87.9m), mainly due to the performance of the group’s fruit division.
According to Capespan’s half-year financial statements, higher values were achieved across the major fruit types, and together with the depreciation of the rand, these have resulted in free on board prices increasing on average by 62 per cent.
As a result of the increased revenues and costs being maintained, the net operating profit before finance costs increased from a loss of R2.8m (€236,000) to a profit of R60.5m (€5.1m).
The group’s performance mirrors the overall performance of the South African fruit sector during the first half of the year, when record prices were recorded in many categories.
However, the group warned that it would be difficult to repeat the results in the second half of 2008.
“The second half of the year will be challenging and it will be difficult to match the significant improvement achieved in the first half of the year,” the group said in a statement. “The international fruit markets have slowed down and together with an anticipated reduction in the South African citrus volumes, will impact negatively on the group's performance in the second half of the year. However, total fruit volumes are anticipated to grow above the prior year due to a continued growth in non South African sourced products.”
Meanwhile, latest figures released by the country's Citrus Growers’ Association have indicated that total citrus exports will be on par with last year’s 90m-carton crop.
Exports to the US have been completed, with the last reefer ship having left Cape Town during week 39. The fruit is expected to be discharged in Philadelphia around 20 October and it will be a race against time to clear the South African volumes before the start of the new Californian crop.
