Turners & Growers (T&G) has released its unaudited results for the year ending 31 December 2014, with a gross income of NZ$24.9m, up 6 per cent from 2013.
Establishing a grape-growing operation in Peru, setting up an office in China, and a challenging year for grapes and kiwifruit have been cited for T&G’s profit growth falling short of the forecast 10-20 per cent growth.
Pipfruit was the standout category for the year, with its operating profit increased from NZ$21.2m in 2014 to NZ$23m in 2014.
“Despite price pressures across most markets, and a difficult European environment due to economic sanctions against Russia, T&G Pipfruit achieved a solid result for its New Zealand programme,” the company said in a statement released 26 February.
Marketing programmes in North America and Europe saw increased sales and volumes produced, with T&G’s pipfruit export to Asia, Delica, seeing continued growth in sales and profit as result of more pipfruit available to Asian markets.
T&G’s Diversified Produce Trading business posted an operating profit of NZ$1.9m, down from 2013’s NZ$4.7m. Strong trading results in North American with berries, citrus and stonefruit were citied as the major profit contributions, along with growth in Fiji and the Pacific Islands.
Citing a challenging year for its grape category, T&G said its grape business unit met expectations despite lower prices in Asia and the cost of establishing T&G's grape-growing operations in Northern Peru.
Kiwifruit presented another challenge for the group, with its kiwifruit business unit falling behind its 2013 results.
“Both New Zealand and South America had issues with supplying kiwifruit in 2014 due to a lower annual volume and frost damage, respectively. Consequently, T&G could not reach its 2013 operating profit level for the kiwifruit business,” said T&G.
The substantial costs of setting up its T&G’s China office in Shanghai have been justified, with the group stating its now “strategically well-placed to support the future growth in that important market”.
