T&G Global reports another loss but remains optimistic about the future

Chief executive Gareth Edgecombe said weak consumer activity in New Zealand and lower apple production had contributed to the loss of business.
photo: supply

Agricultural exporter T&G Global reported another loss, with its half-year earnings falling as its orchards continued to recover from Hurricane Gabriel.

The key figures for the six months to June, compared with the same period last year, are as follows:

• It reported a net loss of $21.4 million, compared with a loss of $17.7 million in the same period last year.
• Revenue of $820 million vs. $765.3 million.
• Operating loss of $2.6 million vs. operating loss of $11.6 million.

T&G Global reported a 21% increase in net losses compared to the same period last year.

The loss included a $10.4 million tax charge resulting from changes in government taxes.

Chief executive Gareth Edgecombe said weak consumer activity and lower apple production in New Zealand had contributed to the loss of business, but the outlook was more positive.

“If we look at consumer confidence in New Zealand, we think New Zealanders will still be challenged towards the end of the year with all the challenges we’re facing at the moment … so we’re managing that with very prudent cost management.

“Looking at our apple outlook, we are seeing very strong demand for our key brands, especially Jazz and Envy. We are seeing strong pricing for commodity varieties such as Royal Gala.

“All of our key markets, including the US and across Asia, are experiencing very strong growth and strong demand, and the quality of the apples we are bringing to market is very good, so we are getting great demand signals.”

He said the biggest concern going forward was the cost of exports to Britain and Europe.

“Goods must be shipped to process The Red Sea Problem It will increase costs, so we are being very cautious about how much we actually ship to Europe and the UK.”

T&G Global is continuing to process its Hurricane Gabriel insurance claims and expects them to be settled within this financial year.