Zespri boosts revenues and profits in "strong" FY2019-20
New Zealand kiwifruit marketer Zespri has posted "strong" results for its 2019-20 financial year, which saw boosts in revenues and profits along with higher returns in some categories.
The organization's total operating revenue rose to NZ$3.36bn, up from NZ$3.14bn, with global revenue from fruit sales increasing by 7% to NZ$3.14 billion.
This was based on the sale of 164.4 million trays of New Zealand and non-New Zealand-grown kiwifruit, a 2% reduction on the previous year.
Direct returns to growers rose by 8% year-on-year to NZ$1.96bn, with higher per-tray returns for the Green and SunGold of NZ$6.67 and NZ$11.86, respectively.
Organic Green reached an average return of NZ$9.88, while Sweet Green achieved NZ$7.66.
Zespri’s net profit after tax was NZ$200.8 million, up from $179.8 million in 2018-19. The board expects the total dividend for 2019-20 to be $0.94 per share, up slightly from $0.92.
Zespri chairman Bruce Cameron says the results are encouraging for the industry and the wider New Zealand economy during a time of so much economic uncertainty.
“Working with the New Zealand industry, we’ve continued to strengthen Zespri’s reputation for providing the world’s leading portfolio of branded kiwifruit for 12 months of the year, which drives stronger returns for New Zealand growers and our communities," he says.
“The result reflects the hard work Zespri and the industry are undertaking to both grow supply and add value through a world-leading brand and a premium product."
Chief executive Dan Mathieson says the industry had worked hard in New Zealand and the markets to manage quality and deliver more than 5 billion pieces of Zespri Kiwifruit to people all over the world.
“Overall, 2019/20 was another strong year for Zespri with continued growth in our largest markets including Japan, Greater China and Europe," he says.
“On top of strong returns we achieved some real milestones last season including commercialising the new Zespri Red Kiwifruit variety, opening our new Head Office in Mount Maunganui, launching our new brand, announcing our sustainability targets and investing more than ever in communities."
He added that Zespri has focused on creating more value, and has made good progress in building its business for the future and investing in the systems needed for continued growth.
“Looking ahead, we’re excited about continuing to roll out our refreshed brand identity, and providing the world with even more healthy, fresh and great-tasting kiwifruit all year round,” Mathieson says.