Four of T&G Global's orchards were severely affected in the cyclone cutting its apple crop. File pic Photo: RNZ / Niva Chittock
Produce exporter T&G Global has reported an interim loss after a difficult half year following the effects of Cyclone Gabrielle.
Key numbers for the six months ended June compared with a year ago:
- Net loss $15.7m vs $5.7m profit
- Revenue $765.3m vs $645.5m
- Operating loss $11.6m vs $15m profit
- Net assets $553.8m vs $563.6m
T&G chief executive Gareth Edgecombe said the devastation of the cyclone and subdued consumer demand in some global markets resulted in a challenging first half.
"It was a difficult growing season for apples in Aotearoa New Zealand, followed by Cyclone Gabrielle in February causing significant damage to parts of Hawke's Bay and Tairāwhiti Gisborne," he said.
T&G saw minor flooding in some facilities, and four orchards were severely affected, representing about 13 percent of its planted hectares in Hawke's Bay. It led to a fall in apple volumes, Edgecombe said.
A further 22 percent of planted hectares would have reduced productive capacity over the next few years, he said.
"At the same time, inflationary pressures have led to reduced consumer demand in some global markets, including the United Kingdom and China."
To help with funding while it managed the challenges following the cyclone, T&G has secured a loan with German parent company BayWa AG.
The unsecured loan would be for an initial term of three years.
Edgecombe said T&G has reprioritised capital expenditure, cut costs and was maintaining strict financial disciplines as it recovered.
T&G chair Benedikt Mangold said the business remained resilient despite the challenging period.
"While in the short term there remain uncertainties on the horizon as we continue to navigate the economic climate and impact of the cyclone, the long-term outlook for fresh produce remains positive," he said.