Start of a turnaround?
In another sign of improving agribusiness sentiment, two listed companies have lifted their forecast earnings for the year.
This is in spite of a time period that was dominated by the Covid pandemic, adverse weather events, labour shortages, machine commissioning delays, shipping disruptions, lower fruit yields and poor quality produce.
While revenue was up 10% to $247.3m, earnings were impacted by increased costs and lower than expected fruit volumes.
Labour was extremely tight through key main harvest periods, the company said, adding that they needed to innovate to maintain operations. Personnel were redeployed to different areas of the business at peak stress load to ensure the continuity of operations.
Fruit volumes for the six months were lower than expected, due, in part, to a late 2021 storm in the Ōpōtiki region, accompanied by a seasonal reduction in yields.
Additionally, the Gisborne region was later than normal to mature and was then hit with persistent rain.
The company’s full year net profit before tax is forecast to be between $9m and $11m.
