T&G saw an operating profit of NZ$12.7mn in 2024 compared to a loss of NZ$45.6mn in 2023
High demand for T&G Global’s premium Envy and Jazz branded apples, coupled with higher pricing in global markets, has helped T&G achieve good momentum in its bounce back from the impact of Cyclone Gabrielle, according to the company’s 2024 annual report.
For the year ending 31 December 2024, T&G recorded a full-year loss before tax of NZ$6.8mn for the year compared to a loss before tax of NZ$64.2mn in 2023, and an operating profit of NZ$12.7mn compared to a loss of NZ$45.6mn in 2023.
T&G Global chair, Benedikt Mangold, said the results demonstrate great improvement.
“It was a year of continued recovery, following the devastating effect of Cyclone Gabrielle,” Mangold said. “While our results are not where we want them to be, it is pleasing to see the momentum in the business, particularly in apples, which is the engine room for our growth.”
Mangold added that T&G has invested significantly into its apple business over the last six years including automation-ready orchards with high-performing premium varieties and a world-class post-harvest facility.
“With the business now coming out of the difficult post-cyclone period, we are on the edge of realising a sustainable performance uplift from the investment made as part of our apples strategy,” he said.
Apples revenue rose 5 per cent to NZ$859.1mn, with the business achieving an operating profit of NZ$43.7mn, compared to NZ$10.3mn in the year prior.
T&G Global chief executive, Gareth Edgecombe, said the apples business accounted for 63 per cent of T&G’s revenue of NZ$1.36bn which was up 2 per cent on 2023.
“Following the impact of the cyclone, this year’s results represent a significant performance turnaround,” Edgecombe said. ‘It is heartening to see the investments made in our apples business supporting better performance and good growth.
“The global premium apple market continues to grow, particularly in emerging Asian markets. Our growth strategy is supported by a framework to unlock that growth through an expanded presence in key global markets and across retail and wholesale channels. With this, volumes, revenue and profitability will increase.”
Edgecombe said the apples’ performance helped offset a difficult year for T&G Fresh. This business saw ideal growing conditions produce plentiful supplies but faced low consumer demand as households adjusted to a higher cost of living and an uncertain economy.
T&G Fresh revenue, which includes the company’s Australian business, was 6 per cent lower at NZ$455.3mn compared to NZ$484.3mn in the prior year. This contributed to a 63 per cent reduction in T&G Fresh’s operating profit which came in at NZ$3.6mn.
Edgecombe said that in a tough year, T&G Fresh still made positive progress, achieving operational efficiencies, acquiring a summerfruit business, expanding its Queensland blueberry operations and delivering strong Australian citrus exports.
“We broadened our portfolio, acquiring the Hinton’s stone fruit business and leasing their stone fruit orchards in Central Otago, and nearly doubling our Australian blueberry operations. All this work leaves us in good shape to take advantage of improving conditions in the year ahead.”
VentureFruit increased its revenue by 44per cent to NZ$13mn and reduced its operating loss to NZ$4.3mn.
“VentureFruit’s royalties from sales benefitted from the positive market pricing achieved with Envy and Jazz branded apples at a consumer level,” Edgecombe said. “The business was also successful in securing license contracts for additional Envy plantings in the US and China, which will enhance future revenue.”
VentureFruit also made good headway with T&G’s newest premium apple brand, Joli.
“Released last year, Joli has attracted good grower interest in the US, while pilot plantings in Europe will support the brand’s growth in that region,” Edgecombe said. “Closer to home, the first commercial scale plantings of Joli in the South Island will go ahead in Canterbury in 2025 and 2026, with FarmRight, the New Zealand Superannuation Fund’s rural investment manager, licensed to grow 125ha on their property.”
Looking ahead, Edgecombe said the 2025 New Zealand apple harvest is on track to be a great high-quality crop, with exceptional colour and taste, and the focus is on excellence in delivering the apples strategy. Improving consumer sentiment will benefit T&G Fresh, which has reduced its costs and improved efficiencies to strengthen margins. VentureFruit will continue to acquire and commercialise premium new varieties, develop new market growth opportunities, and protect and defend its intellectual property.
