Turners & Growers first half falls short

Thursday 12th August 2010

Turners & Growers lifted its underlying earnings 10% in the first-half of its financial year, although came up short of analysts' expectations.

The Auckland-based fruit marketer and distributor reported earnings before interest, taxation, depreciation and amortisation of $11.8 million in the six months ended June, compared to $10.7 million a year earlier.

That's less than the $21.1 million forecast by Forsyth Barr. Net profit tumbled 63% to $2.2 million, or 1.58 cents per share, after T&G took a $4.9 million one-off, non-cash hit on the government's changes to tax treatment on depreciation.

Revenue fell 7.3% to $292 million over the period.

"While the fresh produce industry has been impacted by events outside our control, at this stage we expect the year end forecast, excluding one-off tax adjustments, to be up on last year," said chairman Tony Gibbs.

Earlier this month, the Guinness Peat Group-controlled firm threw its support behind an Act Party bid that would allow owners of kiwifruit variants to export their own fruit instead of being forced to go through the statutory monopoly exporter, Zespri.

The shares sank 4.8% to $1.38 on the NZX today, and have slipped 4% this year.

Businesswire.co.nz

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