DMS Delivers Outstanding Grower Returns

Tauranga-based DMS, the leading kiwifruit and avocado orchard management and post-harvest operator, has delivered outstanding grower returns and strong profitability for its 2017/18 season.

The outstanding kiwifruit results were highlighted at the company’s recent Annual Meeting. Once again its friuitloss figure, as recorded on the Industry scorecard, was the lowest which allowed for significantly higher than average net storage earnings boosting the grower’s OGR.

Profit before rebates and other distributions is $8.3 million. This profit is forecast to be exceeded in the coming 2018/19 season with higher volumes through both DMS packhouses.

These outstanding results have allowed DMS to maintain its shareholder rebate of 30 cents per tray packed and maintain the dividend at 8 cents gross per share on the increased capital of 2017 – effectively a 20% increase.

The just packed 2018 season has also set a new record with 4.8 million trays of Class 1 Sungold and 8 million trays of Class 1 Green. Market share increased in 2018 to 8.0% (5.1% in 2011 when PSA arrived and 7.5% in 2017) due to increased hectares supplying DMS. Another new record was set in week 22 of the 2018 season with 1.8 million trays packed in a single week between both sites.

DMS, The Orchard Champions, produced an average of 13,430/ha compared to the 11,526/ha industry average in the 2018 harvest. Using the midpoint of the Zespri forecast range of $5.70/tray, DMS managed growers will earn $10,800/ha more than the industry average grower.

“DMS is all about our people and we’re delighted that our number one priority of increasing grower profit is being achieved,” said Derek Masters, CEO, DMS Progrowers Ltd. “This is a very good result. When combined with our excellent results of previous years, it’s great to see our market share continuing to grow.”

In 2017/18 DMS continued to invest in the development and up-skilling of staff as well as investing heavily in new packing and coolstore facilities. In the last four years DMS has invested almost $40m in new coolstores and ancillary equipment to best look after their grower’s fruit. Looking forward, DMS will focus on increasing its packing capacity by building an additional packhouse at Te Matai Road, Te Puke for the 2020 season.

“We continue to recruit new clients and we welcome all new growers to the DMS family,” added Mr Masters. “Staff ability and stability remains a key strength at DMS. Our staff numbers have increased as we have grown and we now employ a permanent workforce of over 110 talented people within our team. We also made a significant appointment to the board in 2018 with Lain Jager. This will strengthen our strategic thinking and structure as we approach our 30th year of operation.”

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