Turners and Growers annual results:
Revenue - $570m, up 10.7pc
Profit - $14.1m, up 0.7pc
Dividend - 10 cents per share
KEY POINTS:
Turners & Growers reported a small increase in annual net profit, but said the make up was different from the previous year with stronger exports offset by weaker domestic trading.
Net profit rose 0.7 per cent from 2007 to $14.1 million in the 2008 calendar year, while revenuefrom ordinary activities gained 10.7 per cent to $570.1m.
The fresh produce distributor and exporter said the rise in operating revenues was mainly a result of a full trading year from exporter Delica and the introduction of fruit grower Kerifresh last March.
Chairman Tony Gibbs said the company was "trading adequately" and while some divisions were not immune to a market downturn, so far the group has not been materially affected.
"The board believes the company is robust and will continue to trade profitably into the future."
The 2008 profit result included some positive and negative adjustments of a one-off nature.
An $8m discount or gain on the purchase of Kerifresh was offset by a $4.2m write-down of pipfruit exporter Enza's investment in Worldwide Fruit, and a $2.2m loss from Kerifresh trading since March.
Enza had a strong finish to the year despite reduced volumes caused by pre-season frosts, Gibbs said.
"The positive finish was assisted by a weakening New Zealand dollar and strong in-market prices.
"Lower volumes adversely impacted the profitability of coolstores and packhouses, however this was more than offset by increased returns from pipfruit exports."
The Enza apple orchards bought in 2007, had a better year on the back of increased grower returns, Gibbs said.
Profits from the Enzafoods division rose, mainly due to stronger apple juice concentrate prices. It was also helped by a weakening New Zealand dollar offset by reduced demand in the last quarter of the year.
The global economic downturn had affected consumer demand, especially on higher priced items.
The Status Produce subsidiary had a poor year mainly due to a ban on tomato exports and excess produce from Australia flooding the New Zealand market. That caused an oversupply of domestic produce and subsequent price "destruction".
The export ban had now been lifted and normal trading should continue throughout 2009, said Gibbs.
A fully imputed cash dividend of 10c per share is to be paid. Turners & Growers shares last traded yesterday at $1.25, off the year low of $1.20 hit earlier in the day, and down from a year-high of $2.35 in June.
