KEY POINTS:
Turners & Growers said today its December year net profit fell 17 per cent to $14 million mainly due to poor pipfruit returns.
Revenue from ordinary activities fell 6.4 per cent to $515m.
A dividend of 10 cents per share will be paid on March 18.
Chairman Tony Gibbs, who represents 62 per cent owner GPG, said Turners was proposing to announce a profit distribution plan of 10 cents per share "along the same lines as other publicly listed companies", for which details would be announced shortly.
He said Turners' domestic markets, including imports, had a good year, up significantly from 2006. Prices across most produce lines were firm and consistent throughout the year.
Other domestic divisions including the Fruitcase Company, Transport and Floramax all traded well and had improved results from the prior year.
The high New Zealand dollar hit pipfruit exports, although offshore prices were consistent with prior years. Export volume at subsidiary Enza was slightly less in 2007 as growers redeveloped their orchards, replacing commodity varieties and replanting with exclusive varieties with stronger returns.
Volumes of Enza's trade-marked Jazz apple are increasing incrementally with significant numbers expected from 2009 onwards.
Enza is aiming to reduce reliance on commodity varieties where it becomes increasingly more difficult to compete in a global market.
A new variety, Envy, had generated significant interest and will be propagated globally.
The new pipfruit orchards in Hawke's Bay were hit by lower than expected pipfruit returns. These orchards will be converted from commodity varieties to Jazz and Envy.
The tomato and glasshouse production unit had a slight improvement in profit but faced variable prices.
Enza's fruit concentrate, ingredient and juice production division had a good year due to a significant price increase in world apple juice concentrate.
Enzacor Pty Australia, Turners & Growers Australian trader in fruit and vegetable products, had another good year, exceeding 2006's performance.
The investment in produce exporter Delica Group added a satisfactory profit, Mr Gibbs said.
During the year, $32.6m was spend buying two pipfruit orchards in Hawke's Bay, a mandarin and kiwifruit orchard in Kerikeri, north of Auckland, and buying Delica.
This, together with increased property valuations, expanded shareholders funds from $243.9m to $264.6m while short term debt only rose $5m.
Turners shares last traded at $2.10. They have fallen from $3.06 in April.
- NZPA
