T&G Global lifts annual profit 83% on acquisitions
T&G Global, the fruit marketer controlled by Germany's BayWa, lifted annual profit 83% as it benefited from acquisitions and improved performance in its existing businesses.
Profit rose to $19.5 million, or 15.4c per share, in calendar 2015, from $10.6 million, or 8.4c, the year earlier, the Auckland-based company said in a statement. Revenue increased 12% to $812.8 million, ahead of a 9.2% increase in operating costs to $794 million.
T&G benefited from acquisitions over the past two years, including the purchase of Hawke's Bay Apollo Apples, tomato growers Great Lake Tomatoes in the Bay of Plenty and Rianto in Waikato, moving to control of its Australian asparagus joint venture, and entering into a joint venture with Unifrutti Chile to grow and export Peruvian grapes.
"Together, these new additions contributed $63.4 million of revenue to the group with the majority of the remaining increase attributable to higher volumes and prices in the pipfruit business, an expansion of markets in the trading of table grapes, improved revenue and commission income domestically from other operations, further growth in imports into Australia, and diversified produce exports from New Zealand to Australia," the company said.
"The trading entities in New Zealand and offshore also kept their trading margins stable which, with increased trading volumes, resulted in significantly higher operating profit than 2014."
Net financing expenses increased to $12 million from $7.1 million, reflecting its expansion in the pipfruit, tomato and asparagus businesses, as well as capital expenditure aimed at improving existing facilities to enhance competition, it said.
Its shares last traded at $2.10, and have gained 14% the past year.