Wednesday 19th June 2019
|Text too small?|
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, up about 42 percent from a year earlier when adjusted for the firm's three-for-two stock split in March.
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.
NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.
No comments yet
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
NZX, EEX eye carbon auction opportunity
A2 Milk boss steps down, shares fall 7.7%
NZX says operating earnings will reach top of guidance
NZ dollar consolidates weekly gain of more than a US cent