T&G Global first-half profit rises 18% on pipfruit performance, Apollo Apples
T&G Global [NZX: TGG], the fruit marketer controlled by Germany's BayWa, posted an 18 percent gain in first-half profit, which it said was driven by the performance of its pipfruit division and the first six-month contribution from Apollo Apples.
Profit was $12.1 million, or 10.3 cents a share, in the six months ended June 30, from $10.2 million, or 8.7 cents, a year earlier, the Auckland-based company said in a statement. Sales climbed to $371 million from $340 million.
Hawke’s Bay-based Apollo Apples, acquired last year for as much as $44.1 million including earnouts, contributed $28 million to revenue and $2 million to operating profit in the first half. T&G has continued to extend its footprint since buying Apollo, including a venture with Unifrutti Chile to grow and export Peruvian grapes, and, after balance date, a deal with long-term Australian partner M&G Vizzarri that will strengthen its position as a major asparagus trader.
Improved earnings "were driven by a good performance in the pipfruit division, steady trading in New Zealand produce, international produce and the processed foods division, and the first time consolidation of Apollo Apples in the group's half-year result," the company that used to be called Turners & Growers said.
Processed foods turned to a first-half operating profit of $400,000 from a year-earlier loss of $1.6 million, which the company attributed to operational efficiencies and increased fruit volumes. Pipfruit operating profit climbed 24 percent to $19.8 million. International produce recorded a 93 percent gain in first-half operating profit to $2.4 million.
T&G was unchanged at $2 and the shares have gained 5.3 percent this year.