Produce Investments, the owner of UK potato supplier Greenvale AP, has reported an operating loss of £680,000 (€801,140) for the 26 weeks ending December 29, 2012, down significantly from the prior year's profit of £4.76m (€5.6m).
The firm, which supplies retailers including Tesco and Sainsbury's, has cited last year's wet weather as a reason for the loss as it negatively impacted on crop yields.
Chief executive Angus Armstrong explained: 'As a consequence of this low-yield and high-waste crop, free-buy prices for potatoes are exceptionally high and additionalimported tonnages are being sourced to fulfil UK market requirements.
'Bothof these factors have impacted our raw material costs in the first halfof the year and it is likely that this will continue to be the case until we get into next season's crop.'
Armstrong said that the company is now working hard to increase potato prices in order to cope with the rise in cost of raw materials and predicts that the business will improve its performance and meet all of its targets in 2013.
However,despite the loss, revenues rose 13 per cent from £79.38m to £89.67m forthe same period in 2012, while the firm's net debt increased to £26m from £9 million in 2011, fuelled by the acquisition of Cornwall-based potato grower Rowe Farming.
Meanwhile, the company has announced the appointment of a new executive director. Tony Brambridge, who is chairman of the company's UK potato business Greenvale, will take up therole.
'We are pleased to announce today the appointment of Tony Bambridge to the board with immediate effect,' Armstrong said.
'Tonyhas been involved in the company since 1999 in his role as chairman of Greenvale AP and with his extensive background in the agricultural sector will be a valuable addition to the board.'
