Zespri predicts profit fall

Single desk kiwifruit exporter Zespri is tipping a 7 to 8 per cent drop in net profit for the year to March, in part because of the strong dollar. However, the recent fall in the kiwi will boost the chances of greater grower returns for the 2006 season, the company said.

In the year to March 2005, Zespri made a net profit of $26.5 million on turnover from global fruit sales of $1.02 billion, up 12 per cent from the previous year. The company exported 81.5 million trays of the fruit.

Final figures for 2006 are due shortly. One Zespri estimate was for a $1.8 million to $2.1 million drop in net profit, with export volumes down slightly at 81.3 million trays. The expected drop reflects the strong dollar last year, higher freight costs and cheaper prices for competing fruits in Asia and Europe. Zespri's main trading currencies are the yen and the euro.

The last forecast payout for the 2005 season was $6.78 a tray. No forecast for the 2006 season will be released till August. It is hoped a sustained fall in the dollar's value will boost local currency returns to New Zealand growers. Picking is already under way and Zespri treasurer Jen Scoular said this season was looking positive.