New Zealand-based fruit company T&G Global has reported increased revenues and a return to profit which it said was helped by strong demand for its premium ENVY™ and JAZZ™ branded apples, coupled with higher pricing in global markets, as it bounced back from the impact of Cyclone Gabrielle.
T&G Global Chair, Benedikt Mangold, commented, “It was a year of continued recovery, following the devastating effect of Cyclone Gabrielle. While our results are not where we want them to be, it is pleasing to see the momentum in the business, particularly in apples, which is the engine room for our growth. Over the last six years we have invested significantly in our apples business to enable our growth, including automation-ready orchards with high-performing premium varieties and our world-class post-harvest facility. With the business now coming out of the difficult post-Cyclone period, we are on the edge of realising a sustainable performance uplift from the investment made as part of our apples strategy”.
Apples revenue rose 5% to $859.1m, with the business achieving an operating profit of $43.7m, compared to $10.3m in the year prior. T&G Global Chief Executive, Gareth Edgecombe, stressed that the apples business accounted for 63% of T&G’s revenue of $1.36 billion which was up 2% on 2023. “Following the impact of the Cyclone, this year’s results represent a significant performance turnaround. It is heartening to see the investments made in our apples business supporting better performance and good growth,” he said. “The global premium apple market continues to grow, particularly in emerging Asian markets. Our growth strategy is supported by a framework to unlock that growth through an expanded presence in key global markets and across retail and wholesale channels. With this, volumes, revenue, and profitability will increase”.
Mr Edgecombe added that the apples’ performance helped offset a difficult year for T&G Fresh. This business saw ideal growing conditions produce plentiful supplies but faced low consumer demand as households adjusted to a higher cost of living and an uncertain economy.
T&G Fresh revenue, which includes the company’s Australian business, was 6% lower at $455.3m compared to $484.3m in the prior year. This contributed to a 63% reduction in T&G Fresh’s operating profit which came in at $3.6m after the division acquired a summer fruit business, expanded its Queensland blueberry operations, and delivered strong Australian citrus exports.
VentureFruit increased its revenue by 44% to $13.0m and reduced its operating loss to $4.3m. “VentureFruit’s royalties from sales benefited from the positive market pricing achieved with ENVY™ and JAZZ™ branded apples at a consumer level,” added Edgecombe. “The business was also successful in securing license contracts for additional ENVY™ plantings in the USA and China, which will enhance future revenue. It also made good headway with our new premium JOLI™ apple brand”.
