18 Oct 2021

T&G Global lowers full year profit expectations

2:30 pm on 18 October 2021

Persistent labour shortages and rising shipping costs has forced produce grower and exporter T&G Global to lower its full-year profit expectations.

Envy apples from T&G Global

Photo: Supplied

The company is now forecasting earnings of between $4 million and $10m, compared with $16.6m a year ago.

It said the disappointing outlook reflected updated forecasts in the results of a number of T&G business units.

They include apples, due to shipping challenges and associated impacts on pricing and costs, particularly in the northern hemisphere.

International trading, primarily because of those shipping delays, market access challenges and supply shortages, particularly from Australia and the United States.

T&G Fresh, the domestic business, was also affected because of Covid-19, which impacted labour availability and costs, the pricing of seasonal produce lines and restrictions on retailers opening.

Chief executive Gareth Edgecombe said while it was planning for labour shortages due to borders being closed to seasonal workers, the enduring supply chain disruptions were a surprise.

"We've had significant delays and shortfalls in overall shipping. What that means is it has delayed product to market and it's also created real unsurety about exactly when product will be available in each of the markets."

Edgecombe said the company would look to charter more ships in the future.

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