1 Mar 2017

NZ fresh food exports drive company earnings

5:56 pm on 1 March 2017

New Zealand's reputation for quality fresh food exports has lifted earnings for T&G Global and New Zealand King Salmon.

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New Zealand King Salmon reported a 52 percent rise in its first half profits. Photo: Supplied

Fresh produce seller T&G Global, formerly Turners and Growers, has reported a two-thirds rise in full-year profit on the back of improved sales.

The company's net profit for the year ended December was $32.4 million, including a near-$12m gain on an asset sale, compared with $19.5m the year before.

It benefited from higher prices for its fresh produce, particularly apples and kiwifruit, which helped to lift group revenue by 7 percent to $872m.

T&G's other produce includes asparagus, which it grows in Australia and Mexico, and table grapes in Peru. It has opened sales offices in Asia and Europe over the past year.

"In 2015 we went through a period of acquisitions and integration. The past year was about consolidation and building on our foundation," chief executive Alastair Hulbert said.

T&G has a target of $2 billion in sales by 2022.

Meanwhile, the country's biggest fish farmer, New Zealand King Salmon, has reported a 52 percent rise in its first half profit on stronger exports.

Its net profit for the six months ended December was $8.7m, up from $5.7m the year before.

The company farms salmon in the Marlborough Sounds and listed on the NZX last year in a $30m share float, which raised money for new sea farms and processing infrastructure.

NZ King Salmon chief executive Grant Rosewarne said further attention to its brand and marketing helped lift export volumes by 19 percent.

"We have added retail and marketing expertise to our North American team to drive business development in supermarket channels, successfully initiated sales to China ... and finalised our single harvest method, thus opening up exports to Europe and improving operational efficiencies."

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