NEW ZEALAND - As we know, the challenges presented in the past two years have posed many impacts to operators. As we move forward through 2022, many are assessing these impacts in order to conquer future obstacles and pursue growth. Recently, T&G Global outlined its strategic plans in its financial results for the year ending December 31, 2021.
“2021 brought about some real challenges that have had a detrimental effect on our bottom line. The impacts of hail on our Nelson-grown fruit and challenges with border closures and labor shortages due to COVID-19, reduced both the sizing and volumes of our apples. Further, global supply chain disruptions, including fewer ships visiting Aotearoa New Zealand and container shortages, affected our ability to import tropical produce into Aotearoa New Zealand and export apples to customers around the world,” says Chief Executive Officer, Gareth Edgecombe.
According to a press release, the ongoing implications of COVID-19 have continued to challenge the company; however, through the hard work of its team, T&G has progressed well in building a sustainable foundation for growth.
“Our T&G whānau worked tirelessly to address these challenges, chartering ships and partnering with primary sector exporters to get our fresh produce to export markets,” Edgecombe continued.
Highlights from the report include:
- Revenue: $1.37 billion, down from $1.41 billion
- Operating profit: $16.9 million, down from $32.4 million
- Net profit before tax: $9.8 million, down from $22.0 million
- Net profit after tax: $13.6 million, down from $16.6 million
- Total equity: $573.6 million, up from $519.8 million
The decrease in operating profit was reportedly largely due to the impact of the hail, labor shortages, increased shipping costs, and shipping delays, as well as the influence COVID-19 had on market and customer access. This was offset to some extent by increased Envy™ licensing revenue.
“With global consumer demand for our premium Envy apple brand projected to increase five-fold by 2030, we’ve continued to build the platform to support this growth. This has included strengthening our in-market capabilities in key global markets, planting more Envy on future-proofed 2D structures and making significant investment in new automation technology such as new picking platforms. We’ve also started construction on a new $100 million, leading-edge, automated packhouse in the Hawke’s Bay, which will improve productivity and accommodate increasing volumes of Envy and other apple varieties,” added Edgecombe.
The growth in total equity was enhanced by unlocking significant underlying value from the company’s strategic capital recycling program. Driven by its purpose to grow healthier futures, excellent progress is being made on T&G’s strategy and ongoing transformation.
“Furthermore, the launch of VentureFruit™, our global genetics and variety management business, was a real success and future plans will see us bring new and superior fruit to consumers, retailers and growers around the world,” said Edgecombe.
For more details of the report, please read the press release in full here. We will continue to follow the progress of companies like T&G Global, so don’t go anywhere.
