New Zealand kiwifruit exporter Zespri has been hit hard by losses linked to currency fluctuations in the last year, losing more than $50 million (£31.3m).
The company suffered a large number of foreign exchange contract losses last year and has factored in an even higher loss this year, according to financial statements released in its annual report this week.
Zespri lost $50.4m in the year to March 31 on derivative contracts, which it uses to protect itself against currency fluctuations, and has forecast it will make a further $82.6m loss this year. Losses incurred through hedging must come out of the income growers are paid by Zespri.
The company has recouped $44.3m of the $50.4m sum with agreements, and $5.99m came from other financial liabilities. This left Zespri with a foreign exchange gain of $6.2 million in total.
No comments yet