Wednesday, 24 March 2021 14:55

Strong growth for T&G in a year of uncertainty

Written by  Staff Reporters
T&G chief executive Gareth Edgecombe. T&G chief executive Gareth Edgecombe.

Produce company T&G Global recently announced its financial results for the year ending 31 December 2020.

The company claims this shows strong growth in a year of uncertainty.

Chief executive Gareth Edgecombe says the results are down to the hard work and the ongoing transformation to improve T&G's underlying performance.

"It's been a year of extraordinary challenges, with the Covid pandemic uncertainty and volatility around the world. International lockdowns and changes to operating procedures affected the day-to-day running of our business, with other setbacks such as the closure of some international wholesale markets and complexities around the import and export of produce, providing other challenges.

"Despite this, our team showed a huge amount of resilience and adaptability, uniting under difficult and uncertain circumstances. The result is testament to their hard work.

Edgecombe says the 2020 result also follows a concerted transformations of the business during the past few years.

"While we still have a way to go, our strong underlying results demonstrate our strategy and performance is delivering."

The company's apples business had a particularly strong year, improving operating profit by 56%, from $33.5 million in FY19 to $52.1 million in FY20.

A 23% increase in the sales of T&G's New Zealand Envy apples saw the crop sell out prior to the arrival of northern hemisphere fruit.

"A sustained focus on harnessing the best genetics, building premium brands, delivering strong sales momentum in Asia and continually optimising its supply chain, all contributed to the strong result."

Meanwhile, the company's acquisitiion and integration of Freshmax New Zealand's fresh produce division in April 2020 saw the creation of T&G Fresh. Both businesses combined to deliver a revenue increase of $75 million, to $357.7 million in 2020.

To help fund further growth initiatives, including investment back into the business, T&G closed the year out strongly with the sale and leaseback of its Nayland Road post-harvest facility in Nelson for $50.5 million.

T&G Global chairman Klaus Josef Lutz says despite the pervasive challenges faced during the year; the company successfully built on the foundations laid over the last two years to deliver a strong profit result.

"In the context of so much uncertainty, and the impact of various one-off and climate-related factors, it is very pleasing to see a substantial improvement in T&G's underlying financial performance."

Edgecombe put the year's good result down to the work of the T&G team.

More like this

Hard graft pays off

Around 20 hectares of T&G Global’s mandarin orchards in Northland have transformed to a later-season variety over the past two years – via a dose of kiwi ingenuity and clever grafting.

New apple proves to be hot item

The first apple to be commercially released from the Hot Climate Programme is receiving rave reviews from growers in Italy, France and the UK, according to horticultural company T&G.

National

Girls can do anything!

Industry collective Women in Horticulture (WiH) – along with the Massey Hort Society hosted – recently held a livestream event…

Growers want the tools

Agriculture Minister Damien O’Connor says the promotion of fruit and vegetables is about healthy food and food security.

Machinery & Products

Italian stallions hit the spot

Having got throught the ravages of PSA, kiwifruit production has bounced back delivering record harvests and record prices for orchards.

Blowing life into apple harvest

Probably better known in the viticulture sector, Tractor Repairs and Spares (TRS) is now expanding into the horticulture area -…

Mulcher has powerful bite

With the gradual rise in horsepower of tractors being used in orchards, Power Farming NZ has introduced a duo of…

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Blue murder

OPINION: Your old mate recently read an off-the-wall suggestion, by some boffin, that deliberately staining meat blue will lead to…

Foot in mouth - again!

OPINION: This old mutt reckons Agriculture Minister Damien O'Connor too often suffers from 'foot in mouth' disease.

» eNewsletter

Subscribe to our weekly newsletter