NZ: Modest like-for-like profit rise for T&G Global in 2016 -

NZ: Modest like-for-like profit rise for T&G Global in 2016

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NZ: Modest like-for-like profit rise for T&G Global in 2016

The sale of crate business helped income grow by two thirds last year, but even without the sale profits would have risen by 5%.

New Zealand-based company T&G Global recorded a 67% rise in net profit after tax (NPAT) to hit NZ$32.4 million last year, driven largely by the sale of the Fruit Case Company for NZ$11.9 million in June 2016.

However, as mentioned by T&G Global CEO Alastair Hulbert in a release, a solid performance from most of the group's business segments was also to thank.

"In 2015 we went through a period of acquisitions and integration. The past year was about consolidation and building on our foundation. We did this with the support of our shareholders, growers, customers and people," Hulbert said of the performance, which notched a revenue increase of 7% to NZ$872 million. 

"Our business celebrates 120 years in 2017 and we are stable with a clearly charted course. We are on track to achieve our Strategy 2022 target of [NZ]$2 billion in sales revenue and are well positioned for continued growth both in New Zealand and in our international markets."

The group highlighted its position of 47 on Deloitte’s New Zealand top 200 companies list of 2016, up from 55 in the previous year.

T&G Global mentioned some highlights from the year, including continued strong pricing for New Zealand-grown apples, a full year of trading from tomato companies acquired toward the end of 2015, and strong growth in table grapes and asparagus out of Australia and North America.

Additionally, the company had new kiwifruit sales in Southeast Asia through its Memorandum of Understanding (MoU) signed in February, 2016, while T&G continued to grow its presence globally with new offices in Thailand, Japan and Europe.

The company also saw uplifts in business in the New Zealand, Australian and Fijian domestic markets, and an overall operating profit of NZ$33.4 million (an increase of NZ$3.2 million) due mainly to operational improvements in its global pipfruit and New Zealand produce segments offset by weaker performances in the international and processed foods segments. 

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