Reminders of the devastating destruction caused by Cyclone Gabrielle are ever-present in rural areas of Hawke’s Bay three months on. Video / Neil Reid
Fruit grower and marketer T&G Global says it is now looking at a pre-tax loss of $28m to $34 million in the 2023 financial year due to Cyclone Gabrielle’s impact.
This compares with a pre-tax loss of $3.3m in 2022 and a profit of $9.8m in the previous year.
T&G’slatest guidance came after comprehensive assessment of the impact of February’s cyclone.
“This forecast allows for all known cyclone impacts (including clean-up costs) and includes a provision for the one-off write-down of trees and planting structures devastated by the event,” T&G said.
Significant work continued on the remediation of T&G’s impacted orchards in Hawke’s Bay, especially in relation to the removal of silt from around trees.
While most of T&G’s orchards (both owned and leased) were not impacted by the cyclone, four orchards were severely impacted, representing about 13 per cent of the company’s planted hectares in Hawke’s Bay.
Cyclone Gabrielle will hit T&G Global's annual profit. Photo / Angus Dreaver, RNZ
A further 22 per cent of the planted hectares in Hawke’s Bay were impacted to a varying extent and expected to have reduced productive capacity for two-to-three years.
T&G said it continued to work with its insurers to assess potential recovery.
The company’s New Zealand apple crop has now been fully harvested.
“While its overall New Zealand supply volumes are down 19 per cent on last year, at this stage the crop is 14 per cent sold, and the pricing outlook appears strong, particularly for T&G’s premium variety ‘Envy’.
“A fast-start marketing campaign has been implemented in Asia to optimise pricing opportunities, supported by an extensive air-shipment programme,” the company said.
A new automated packhouse in Whakatu, Hawke’s Bay, has been successfully commissioned, and is now fully operational as scheduled.
“The cyclone will clearly have a significant impact on T&G’s 2023 financial performance.
“A cost-reduction programme has been implemented in response to the cyclone and is expected to result in material cost savings in 2024 and beyond.”
“The board remains confident in T&G’s transformation strategy, which is projected to accelerate earnings momentum, particularly as apple volumes increase in line with the maturity profile of its recent significant investments in orchard development notwithstanding the effects of Cyclone Gabrielle,” T&G said.
