Half-year profit rise for Turners

Turners and Growers has reported half-year profit after tax for the six months to June falling to $6 million, from $8.7 million a year earlier.

But the fresh produce distributor and exporter said that for a meaningful comparison, adjustments needed to be made for abnormal items the previous year. Those items were a gain of $7.8 million in relation to the Kerifresh Group purchase and the writedown of the investment in Worldwide Fruit of $4.2 million. Once that was done, the adjusted profit for the corresponding period in 2008 was $5.1 million.

In the latest period, revenue from ordinary activities rose 3.4 per cent to $314.9 million. The result for the six months to June was adequate considering current economic uncertainties and apprehension about New Zealand's recovery, Turners said yesterday.

The full-year result was expected to be lower than last year, although the turnover for many domestic divisions improved recently.

Prices and demand for fresh fruit and produce were lower for the six months to June this year compared with the first half of 2008, Turners said. As a result, the contribution from the company's domestic markets division was down.

In the second half of 2008 the recession started to have an impact with demand falling significantly, the company said.

In contrast, recent turnover lifted above corresponding weeks from last year and the company could regain ground lost in the next six months. The market business, although profitable, still had some areas of geographic weakness, while the Prepack operation continued to perform satisfactorily. The Fruit Case Company performed adequately and was slightly behind last year, Turners said.

The contribution from Enza was up, thanks to increased volume through the coolstores and markets and reasonable returns helped by a weaker New Zealand dollar.

- NZPA