Monday 24th April 2017
|Text too small?|
Zespri International, the country's kiwifruit export marketing body, expects to post a record profit this year due to increased revenue from the allocation of licences to grow the Gold3 variety.
The Mount Maunganui-based company forecast net profit of between $98 million and $103 million in the year ending March 31, 2018, it said in a letter to growers and shareholders. That's ahead of its expectation for the 12 months ended March 31 this year of between $71 million and $74 million, and up from a profit of $35.8 million in 2016.
Zespri attributed the expected ramp up in profit to revenue coming from the 2017 allocation of licences for 400 hectares of its new Gold3 variety.The new variety, also called SunGold, has proven popular as it is more resistant to the Pseudomonas syringae pv actinadiae bacteria, better known as PSA, which decimated the industry some six years ago. By the end of June 2012, more than 35 percent of New Zealand kiwifruit orchards were infected. SunGold, first commercialised in 2010, was key to the sector's recovery.
Late last year Zespri announced it would sell licences for another 400 hectares of the SunGold variety this year, with a further 400 hectares to be released in 2018, 2019 and 2020 subject to the product's performance and global demand.
Zespri shares last traded at $4.60, their highest level since trading in the stock was moved to the Unlisted share trading platform in February 2016. Zespri shares can only be owned by growers, with voting rights dependent on production.
No comments yet
Sky CEO put on notice by chunky vote against salary share scheme
Unions gearing up to oppose 'market tests' on Fair Pay Agreements
Mandatory farm plans scorned as 'tick box' exercises
Kiwi dollar firms on weak US retail data, capped by rate-cut expectations
17th October 2019 Morning Report
SkyCity hoses down union claims over potential job losses
OPINION: Fair Payment Agreements and 'swallowing vomit' - the lot of the CTU
MARKET CLOSE: NZ shares gain; Restaurant Brands climbs on upbeat outlook
NZ dollar stalls after Bascand's rate cut comments
Bascand says RBNZ will consider changing bank capital proposals