Thursday, 23 May 2024 10:22

Zespri's net profit down $60m

Written by  Sudesh Kissun
Zespri chief executive Dan Mathieson. Zespri chief executive Dan Mathieson.

Kiwifruit exporter and marketer Zespri has reported a $60 million drop in net profit, mainly driven by reduced licence revenue from lower pricing per hectare than 2022/23.

Zespri’s net profit after tax was $173.3 million, down from $238.7 million the previous year. The total net dividend is $0.85 cents per share. 

While a difficult growing season resulted in global sales volumes falling 10.5% to 164.2 million trays from 183.5 million in 2022, global kiwifruit sales increased 2% to $3.99 billion, reflecting improved fruit quality and strong pricing secured throughout the season.

Chief executive Dan Mathieson says the results reflect the industry effort to lift fruit quality, along with strong consumer demand for Zespri Kiwifruit.

“We’re delighted to be able to deliver such a strong set of returns to growers, including record per tray returns for all categories other than Organic SunGold, particularly after such a challenging period for the industry.

“It’s really pleasing to see a significant increase in Green returns, up from $5.78 to $9.55 per tray, which is welcome news given how tough it’s been for our Green growers in recent seasons and the difficult growing conditions we’ve faced.

“These strong per tray returns have been driven by improved quality and good pricing alongside our investment in the brand and ability to build demand ahead of supply.

Mathieson says that there were some standout results in some of Zespri’s major markets.

“We’re really pleased with how things have gone in Europe, particularly in being able to deliver really strong value for our Green growers, and that’s been supported by strong value for Green fruit in Japan too.

“China was a standout in terms of being able to deliver strong value for SunGold, reflecting the demand we’re continuing to see for this variety.

“RubyRed Kiwifruit is also continuing to perform strongly and offers us a great platform to start our season in our Asia Pacific markets.  

“It’s been tougher for our organic categories, particularly on a per hectare level where a really big drop in yields has made it challenging, and continuing to lift per hectare returns across all categories as we manage greater volumes remains a focus for us looking ahead.

Zespri’s Non-New Zealand Supply season sales increased to $654.2 million, up from $519.3 million on the back of increased volumes sold of 27.2 million trays, improved pricing and a reduction in quality costs. 

“Our offshore production bases are a critical part of Zespri’s Global Supply strategy helping us to build the brand, to hold shelf space and to maintain our retail and supply partnerships.

“It’s pleasing to see ZGS sales increasing to support the launch of our New Zealand sales season, helping deliver stronger returns to growers in New Zealand and around the world.

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