Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

T&G Global's lower net profit in line with guidance


By Rebecca Howard

Feb. 27 (BusinessDesk) - T&G Global lifted full-year revenue 11.2 percent but a series of weather and tariff-related challenges saw its net profit plunge 63 percent.

T&G said that revenue was $1.2 billion in the year to Dec. 31 but profit for the year fell to $8.3 million from $22.6 million in the prior year, in line with guidance given in December.

"Operational and environmental challenges in key business divisions and markets impacted T&G’s 2018 financial result, including a poor New Zealand growing season for apples and the impact of Chinese tariffs," it said.

Its international produce division experienced adverse weather impacts on its cherry season in Australia and on the quality of its grape harvest in Peru, although its operating profit lifted to $3.1 million due to favourable tradition conditions in its markets, particularly the Pacific Islands.

In New Zealand, poor growing conditions for tomatoes in early 2018 and an oversupply in the domestic market late in 2018 contributed to a decline in operating profit of $8.2 million from 2017 to 2018.

T&G has turned its focus to growing its core businesses, which led it to divest several non-core businesses and investments during the latest period. That included the sale of ENZAFoods to Cedenco Foods New Zealand and the sale of its Kerikeri-based kiwifruit orchards, post-harvest facilities and business assets to Seeka.

Its total assets reduced by $50.5 million, mainly through the sale of kiwifruit post-harvest facilities and orchard land, the sale of assets related to the processed foods business and the sale of property in Christchurch.

The shares, of which Germany's BayWa owns 74 percent, were unchanged at $2.81 and are down around 2.1 percent so far this year.

Looking ahead, T&G said the near-term future global trading environment remains uncertain, particularly with regard to Brexit and the US-Chinese trade dispute. However, it remains confident that the changes it is making will allow it perform strongly in the years ahead.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Seeking 'Clarity': Crown To Appeal Southern Response Decision, Offers Costs

“It is our intention that the clarity that will come from the outcome of these proceedings will enable the Crown to work with Southern Response to provide a soundly based proactive solution to those people that are affected.” More>>

Thinking Of The Children: Plan For Classification For Commercial Video On Demand

Classifying on-demand video content will be made mandatory to bring it in line with other media and provide better guidance and protections to families and young people, says Internal Affairs Minister Tracey Martin. More>>

Cheques Out: Inland Revenue And ACC Push For Paperless

Inland Revenue and the Accident Compensation Corporation are calling ‘time’ on cheques. From March next year, IR and ACC will no longer accept payments by cheque from customers who are able to use alternative payment options. More>>

ALSO:

"Vision And Growth": Capital Markets 2029 Report

Broader participation by New Zealanders, greater access to growth capital for New Zealand enterprises, and more choices for investors drive the recommendations in the Capital Markets 2029 report released today. More>>

ALSO:

Forest & Bird: Call For More Funding To Stop Plague Of Wallabies

Wallabies could spread over a third of New Zealand within the next 50 years, unless control is increased dramatically, says Forest & Bird central North Island regional manager Rebecca Stirnemann. More>>

ALSO: