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

 

Zespri signals profit growth

Zespri signals profit growth, trims expected fruit and services payment


By Gavin Evans

June 19 (BusinessDesk) - Kiwifruit marketer Zespri is forecasting annual profit growth of up to 7 percent.

The firm, which markets kiwifruit on behalf of 2,500 New Zealand growers and another 1,200 in Italy, Japan, Korea and France, is expecting net profit of $182-$192 million in the current year, including licence release income.

That is up from the $179.8 million net profit reported for the year ended March, which was a 77 percent increase from the year before as the firm shipped more fruit for better prices. Total trays sold climbed 21 percent to 167.2 million last year – 85 percent of which was New Zealand-grown green or gold kiwifruit.

Zespri shares trade on the Unlisted market. They changed hands at $8.20 yesterday and have lost about 5 percent the past year.

The latest earnings forecast comes despite a slight trimming of Zespri’s expected New Zealand fruit and service payments.

It is projecting total fruit and service payments of $1.75-$1.85 billion in the year ending March 2020, excluding loyalty premia. That is $25 million less than the firm signalled in its first forecast in April, but in line with the $1.82 billion reported in the year ended March.

Zespri is expecting green fruit to return $5.50-$6.50 a tray at the orchard gate this season, up from the $5.20-$6.20 signalled in April, and the $5.45 achieved last year.

Gold fruit is expected to earn $10.20-$11.20 per tray, up from the $9.70-$10.70 signalled in April and against the $10.89 achieved last year.

Organic green fruit, which accounted for about 3.5 million of the 148.8 million trays of New Zealand-grown kiwifruit last year, may earn $8.30-$9.30 a tray this year, up from the $8-$9 signalled in April, and against the $9.22 achieved last year.

The sweet Green14 variety, which produced about 900,000 trays last year, may bring in $6.80-$7.80 a tray, Zespri said yesterday. That is down from the $7-$8.50 signalled in April but in line with the $7.23 achieved last year.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>

ALSO:

Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>