Export woes cut into Turners & Growers profit

Tough export conditions in the pipfruit sector resulted in a drop in profits for fruit and vegetable trader Turners & Growers last year - although its full-year result came in 13 per cent up on forecasts.

The company, which dominates New Zealand's fruit and vegetable market, posted a profit of $9.72 million.

It said its operating revenue last year at $563 million was in line with projections but down on the previous year "owing to reductions in volumes of exportable fruit available to the company".

As well, as the domestic business, Turners & Growers owns Enza, which exports nearly 40 per cent of all New Zealand apples.

The company said it had been a difficult year for export pipfruit, "with oversupply in most major markets throughout the selling season".

Nevertheless, pipfruit exports were down on the previous year, due mainly to strict adherence to quality standards during a season when a lot of substandard fruit was submitted for export.

The company said its EnzaFoods business remained an integral part of the group as a standalone subsidiary and plans for its full separation were under review.

Last September, the company transferred from the unlisted market to the NZX's main board, where it debuted at $3.20.

Investment company Guinness Peat Group owns a 78.3 per cent stake in Turners & Growers and 10 per cent is held by banana company Bonita. Most of the rest of the stock is controlled by about 1000 fruit and vegetable growers.