Turners & Growers makes $19m loss
Fruitgrower blames high dollar, Eurozone meltdown and PSA virus in posting $19 million loss in 2011, including a $21 million write-down of its orchards.
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Turners & Growers (TUR) blames the high New Zealand dollar, the Eurozone meltdown and the spread of the PSA kiwifruit virus for a $20.9 million writedown in the value of its orchards last year.
In full-year results to 31 December posted to the NZX, T&G said the writedown contributed to an after-tax loss of $18.9 million for the year.
“As a result of the annual revaluation process a number of properties, in particular orchard related land and biological assets, were significantly revised downwards,” the report said.
The high dollar was forecast to persists “for the foreseeable future” and poor returns from the company’s largest export market, Europe, were likely to remain stagnant “due to the worsening economic situation”.
Despite the huge loss, Turns & Growers said once these “one-off” items were removed, adjusted profit was “an improvement on 2010 and the highest for a number of years.”
A mooted takeover by German firm BayWa also played havoc with accounts, with T&G expecting the loss of a $8.5 million deferred tax asset from its Inglis subsidiary and the likely payment of a $3.1 million transaction fee.
The company said early trading in 2012 was in line with expectations.
Matt Nippert
Mon, 27 Feb 2012
Mon, 27 Feb 2012
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Turners & Growers makes $19m loss
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