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Satara reports lower earnings on lower volume

NZAX-listed Satara Co-operative Group Ltd, a kiwifruit and avocado co-operative, said earnings before interest, tax, depreciation and amortisation fell to $3.7 million in the six months to June 30 from $4.9 million last year.Volume was down due to a combi

NZPA
Tue, 14 Sep 2010

NZAX-listed Satara Co-operative Group Ltd, a kiwifruit and avocado co-operative, said earnings before interest, tax, depreciation and amortisation fell to $3.7 million in the six months to June 30 from $4.9 million last year.

Volume was down due to a combination of lower industry yields and a reduction in supplying hectares.

Revenue was down 19 percent to $31m. The bottom line loss was $279,000. No dividend was declared.

The company said that since the appointment of Tom Wilson as managing director during the first half it has focused on improving profitability and building up the grower supply base.

Since the start of the year $1.4m of annualised cost savings have been found.

The half-year result included a 15 percent reduction in support services costs and the full value of the annualised cost savings will flow into the 2011 financial result.

A significant number of growers have joined the company in recent months.

"This is evidence of the changing position and perception of this company. We are optimistic that, coupled with the forecast growth in industry volume over the next five years, our focus and delivery on business efficiency and growth in supply base will drive value for shareholders."

NZPA
Tue, 14 Sep 2010
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Satara reports lower earnings on lower volume
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