The Envy variety had a strong growing season. Photo: Supplied
Leading fresh produce grower and exporter T&G Global has returned to profit on the back of strong demand for apples and moves to trim costs and improve efficiency.
Key numbers for the six months ended June vs year ago
- Net profit $1.7m vs loss $18.6m
- Revenue $920.6m vs $820.1m
- Operating earnings $18.1m vs loss $2.6m
The German owned company said it was getting results from its growth strategy focusing on key products such as apples and a move to expand its overseas markets, as well as reduce its costs.
Chief Executive Officer Gareth Edgecombe said sticking to its plan was paying off.
"Global demand for our premium apple brands is growing in line with our volumes, and across our business we've strengthened customer and grower relationships and optimised our value chain."
The apples business operating profit doubled and its revenue made up nearly three-quarters of group revenue.
"This strong improvement reflects the significant investment in our long-term Apples strategy," Edgecombe said.
He said the Envy variety had a strong growing season and it was out performing in key markets, while its Venture Fruit business has been licensing the growing of a new variety, Joli, in Europe, the US, and China.
The T&G Fresh business has also expanded into stone fruit and berries with acquisitions in Central Otago, the Pacific Islands, notably Fiji, and Queensland, where it grows blueberries, resulting in a return to profit for the operation.
Edgecombe said the company had also had legal success in enforcing its intellectual property rights and combating illegal growing of its varieties in China.
T&G Global's cornerstone shareholder, Munich based BayWa, has signalled it wants to divest its 74 percent stake and local investment bank Craigs Investment Partners has been hired to look at options and potential buyers.
Australia media has speculated that private equity firms are interest in taking some or all of T&G Global.
