For the first six months of 2016, T&G Global has posted an after-tax profit of $22.7 million- 89 per cent up on the same period last year. Formerly Turners and Growers, T&G Global owns apple producers Enza and Apollo and is 74 per cent owned by German company BayWa.
Chief executive Alastair Hulbert said it was a pleasing result for a competitive world market.
"It's been a challenging first six months for some of our apple growers, particularly those in Nelson who were hit by severe hailstorms," he said.
"Some growers lost their entire harvest and T&G lost roughly 10 per cent of its potential volume for the first six months of the year. A warm summer in New Zealand led to delays in pipfruit exports and local citrus sales.
However northern hemisphere markets are performing strongly with increased sales volumes and firm pricing, especially for jazz and envy apples."
Global investment was continuing, with offices in Washington State and Bangkok recently opened, taking international locations to 13.
"T&G is on a journey to increase our supply base and become fully integrated from growing to selling in sustainable growth categories namely pipfruit, covered crops, table grapes and asparagus. Having a stronger in-market presence will enable us to better support our customers ... grow the business and reach our aspirations."
Processed foods revenue increased in 2016 by $2.4 million despite lower 2016 prices for apple juice concentrate.
In February T&G signed a memorandum of understanding with Zespri to market kiwifruit in Thailand, Cambodia, Myanmar and Laos, and in June agreed to sell its crate-hire business - the Fruit Case Company - to a wholly owned PACT Group Holdings subsidiary for an estimated final settlement of $21.2 million and a net gain of $11.9 million before tax.
For the six months ended June 30 revenue was $423 million, 14 per cent higher than the 2015 $371 million revenue.
Source: Hawkes Bay Today/nzherald.co.nz
