Sharechat Logo

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

Wednesday 27th February 2019

Text too small?

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)

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Sanford shareholders back value focus as Sealord profits on volume play
16th December 2019 Morning Report
Pushpay buys Colorado rival for US$87.5m
Xero chair to retire early as family’s health comes first
Business leaders quiz finance minister on capacity to spend $12b
House prices are accelerating again, even in Auckland
13th December 2019 Morning Report
Tourists still coming but growth is slowing
Peters backs StuffME merger bid
Supplements, skincare firm poised for reverse listing

IRG See IRG research reports