Mr Apple owner Scales Corporation has reported a net after-tax profit of $29 million for the six months to the year to June, down 14 per cent on the record profit achieved for the same period last year.

In a statement to the New Zealand Stock Exchange (NZX) the Scales board said the result was a very strong performance in light of a challenging growing season.

Profit was mainly impacted by increased on-orchard and fixed costs incurred by Mr Apple.

"These costs were incurred to ensure that in a very difficult season customers' expectations were met as far as practicable in terms of quality and volume."

Advertisement

Apple production was only 5 per cent less than last year's record volumes "in a very challenging growing season".

Scales managing director Andy Borland said it was a very pleasing result in light of a challenging growing season "demonstrating our resilience and productive consistency in all climates".

"During the growing season the Hawke's Bay region experienced heavier than normal rainfall as well as heavy winds due to ex-Cyclone Cook.

"Notwithstanding these conditions the Mr Apple orchard team produced an overall export volume consistent with the record 2016 crop. Whilst this was assisted to some extent by increases in our managed orchard following the Longview transaction last year, we believe that maintaining export production is an outstanding result."

Scales has three divisions: Horticulture, Storage, and Logistics and Food Ingredients.

Fellow corporate apple producer T&G Global recently reported a 49 per cent decrease in first-half-year profit, crediting poor weather as contributing to apple harvest timing, quality, volume and margin.

"Inclement weather also affected third-party growing partners in New Zealand and internationally, leading to an overall decrease in the volume of fruit available," an NZX statement said.

Profitability was also affected by the northern hemisphere where fruit was available for a longer period, delaying the switch to southern produce.

"These issues led to operating profit for the pipfruit division decreasing by $8 million from the same period last year."

New Zealand Apples and Pears chief executive Alan Pollard said for the whole season nationwide it looked like it would be a similar result to the 2016 season.

"Last year was a record year, so if we do the same we equal our record - you can't complain about that," he said.

It was likely some false assumptions were made on the estimate for the year's crop, he said.

"We got some of that wrong, particularly in Nelson, and there is no doubt the weather also had an impact. It slowed the process down and made maturing a bit more difficult. We didn't get those nights you expect and as you'd expect the cyclones were much more warm and moist."