New Zealand kiwifruit giant Zespri has announced a 10 per cent decline in half-year profits, posting a consolidated, unaudited after-tax figure of $24.9 million (£8.7m) for the six months to September 30.
The company recorded $27.8m (£9.7m) profit for the same period last year.
However, a strong sales market and a weaker New Zealand dollar has seen net global kiwifruit sales rise 10 per cent to $818.7m (£285.5m) over the period, compared to $742.6m (£259m) last year, according to the company.
Zespri ceo Tim Goodacre said: “Zespri remains in a strong financial position. Sales and pricing in most markets are up, rounding off the end of the current sales season and signalling positive prospects for the 2007 season ahead,”
The company predicts a overall annual post-tax profit of $22.8m (£7.9m) compared to $26.4m (£9.2m) last year.
This is attributed to the seasonal influence of fewer sales in the second half of 2006, as well as continuing fixed costs.
The forecast includes the enhanced loyalty premium payable to growers, which was added to the existing loyalty premium earlier this year, bringing the sum of loyalty premiums paid to $14.7m (£5.1m) from $8.2m (£2.8m)
According to a Zespri statement, the board intends to pay out 100 per cent of available profits in recognition of another year of pressure on grower and shareholder cash flows, with orchard gate returns at similar levels to last year.
The company also expects to declare an interim dividend of 50 cents per fully-paid share, payable in February 2007 and subject to Zespri Group Limited meeting solvency requirements.
