T&G Global’s interim results show revenue increased by 7% to $820 million following recovery from Cyclone Gabrielle, but a small operating loss was made larger by a one-off taxation impact.
The net operating loss was $2.6m compared with $11.6m in FY2023, and the net less before tax was $8.2m compared with $21.4m.
Chief executive Gareth Edgecombe said the tax expense at June 30 2024 arose because of deferred tax on buildings of $12.7m, relating to government legislation changes.
The net loss after tax was therefore $18.6m in the six months to June 30.
The revenue from apples was 72% of the total, being $589m, up 14% from last year.
“This season’s apples are high quality, with great flavour and storability, however the lingering impact of Gabrielle has reduced this season’s Hawke’s Bay apple volumes.
“While this is an industry-wide experience, it has impacted our financial results.
“We have also experienced weak fruit and vegetable pricing in the domestic market due to plentiful supply combined with subdued consumer sentiment.”
Edgecombe said the Envy premium variety is selling very well overseas.
“The brand is holding up exceptionally well in the challenging United States domestic market, with it outperforming other premium brands in both pricing and sales.”
The second half of the financial year has signs of easing inflation to benefit the business and households.
“Last year’s cyclone and this year’s reduced apple volumes have highlighted the need to continue to develop resilience across our business to ensure we’re in a strong position, regardless of what comes our way.
“We are firmly focused on delivering our strategy and looking for opportunities to reduce costs, drive efficiencies and grow revenue, to ensure we meet our medium-term strategic and financial objectives.”
In Focus Podcast | Making topsoil top of mind
A feature documentary film, Six Inches of Soil, has been screened in NZ cinemas recently. It follows three young British farmers through their first year of transitioning to regenerative practices. The film has been brought here by regenerative farmer network Quorum Sense and its chair Becks Smith talks with Bryan about the network, the film and why we’ve been talking about regen the wrong way.
