New Zealand agribusiness group Turners & Growers (T&G) has reported a first half growth in operating profit before tax and interest of 4 per cent on the same period last year to NZ$12.86m (US$10.88m).
After tax earnings rose NZ$4.7m on the same period last year to NZ$6.9m, although the first half of 2010 saw a one-off tax adjustment that trimmed last year’s figures.
On the export front, T&G’s apple export business is expected to grow only slightly year-on-year by the end of 2011, the company said in its results report. While the New Zealand apple export industry is generally in a financial rut, the opening of the Australian market and the loosening of import requirements for China are bright points.
Domestically the company said results were satisfactory, with high prices for tomatoes on the back of low Australian production balanced out by a dip in prices on the oversupplied New Zealand banana market.
T&G-owned tomato grower Status Produce has had “an excellent first six months”, and the company predicted it would hit a record profit for the full year. Status has increasingly turned its focus on exports, developing seafreight logistics to increase returns.
Citrus and kiwifruit growing operation Kerifresh has also had a good first half, the company said.
Newly acquired apple operation Inglis Horticulture, now 100 per cent owned by T&G, has reportedly had a difficult six months in line with the wider pipfruit industry.
“Outside of the pipfruit operations, which has been subject to depressed market conditions, the remainder of the group is performing well and it is anticipated that Turners & Growers will produce an improved operating result for the full year,” the company statement said.
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