Brazil: Low apple prices push Renar into the red in Q1
Difficult market conditions in the Brazilian apple market late last year continued into the first quarter of 2015 for Santa Catarina-based company Renar, with a loss of R1.94 million (US$857,095) for the period.
Net revenue was understandably down 30% year-on-year, given the price spike that occurred in the first half of 2014 due to volume shortages from the state of Paraná, and was actually up 31% compared to the first quarter of 2013.
It was gross profit that let the group down in the quarter, dropping from R4.1 million (US$1.35 million) last year to a gross loss of R2.1 million (US$712,377) this year.
Despite the result, the firm said 2015 has begun with positive expectations for the year, following good results in general for 2014.
The group highlighted abnormally high prices in the first half of 2014 which helped drive EBITDA, but as growers collectively held fruit in cold storage in anticipation of the usual high off-season prices later on, the market flooded and prices dropped significantly in the second half.
Overall, Renar notched an EBITDA of R7.9 million (US$2.6 million) last year, which it said was one of the best results in its history.
The report added that Renar's productivity stood at 41 metric tons (MT) per hectare, compared to the industry average of 35MT/ha.