Market close: Flood-exposed stocks hit again; My Food Bag plunges after disappointing trading update

Apple exporter Scales Corp was down a further 19c or 5.76 per cent to $3.11, having fallen nearly 14 per cent in three trading days. Photo / NZME

Stocks with exposure to the flood-stricken fruit growing region of Hawke’s Bay were again hit on the New Zealand sharemarket, as was beleaguered My Food Bag which plunged nearly 30 per cent.

The S&P/NZX 50 Index, however, kept its head up, recovering from a sharp fall at the opening and traded steadily thereafter to close at 12,144.66, down 13.08 points or 0.011 per cent. The index reached an intraday high of 12,166.2 points and low of 12,074.25.

In the week of some of the worst storms and flooding to strike the North Island, the index was down just 0.28 per cent.

There were 38 gainers and 85 decliners over the whole market on volume of 32.41 million share transactions worth $142.76 million.

A group of export-oriented companies are presently assessing the damage caused by Cyclone Gabrielle in Hawke’s Bay and the impact on their businesses.

Apple exporter Scales Corp was down a further 19c or 5.76 per cent to $3.11, having fallen nearly 14 per cent in three trading days.

Greg Main, Jarden Wealth Management adviser, said “Poor old Scales. Until the market gets clarity on the cyclone’s impact on its orchards, there will be uncertainty and concern – especially whether it’s a one-year or multi-year impact.”

Winegrower Delegat Group declined 21c or 2.16 per cent to $9.50; Napier Port, the export gateway for the region, shed 6c or 2.18 per cent to $2.69; and Comvita decreased 5c to $3.40.

Manuka honey producer Comvita said its Hawke’s Bay extraction facility was evacuated and is inaccessible, and an alternative operating site has been found.

Kiwifruit grower Seeka, down 1c to $3, told the market it escaped the full force of the cyclone. Its core Bay of Plenty growing region was not materially impacted, and only 5 per cent of its kiwifruit supply is grown in Hawke’s Bay. Its latest harvest will still be lower due to an early season frost, variable bud break and the cyclone.

Insurer Tower fell 3.5c or 5.51 per cent to 60c. In an update, Tower estimated the flooding in the upper North Island, including Auckland, would cost $95m-$125m and it has received 4850 claims.

Tower has so far received 945 insurance claims for damage caused by Cyclone Gabrielle, and has significantly downgraded its full-year net profit guidance to $18m-$23m, from $27m-$32m.

Tower revised its full-year dividend to 5c a share, from 6.5c, and said the ultimate damage from Gabrielle is likely to trigger its reinsurance for catastrophe events, with an excess of $11.875m.

My Food Bag plunged 11c or 29.33 per cent to a new low of 26.5c after providing another disappointing trading update. My Food Bag listed in March 2021 at $1.85 and has fallen 87 per cent in the past 12 months.

The meal kit company told the market that at the end of January in the 2023 financial year, revenue was down 8 per cent and operating earnings (ebitda) fell 39.2 per cent compared with the same time last year. Deliveries were down 11.8 per cent. Full-year ebita is expected to be $17m-$19m and My Food Bag is not paying a final dividend.

Manufacturer Synlait, up 16c to 4.69 per cent to $3.57, and infant formula distributor a2 Milk, increasing 43c or 5.87 per cent to $7.75, were the bright lights as they reached the final step of re-registering under China’s new food safety legislation.

The Ministry for Primary Industries is next week beginning the audit of Synlait’s Dunsandel processing facility on behalf of China’s State Administration for Market Regulation.

Clothing retailer Hallenstein Glasson increased 20c or 3.64 per cent to $5.70 after telling the market that group sales increased 30.9 per cent to $223.3m for the six months ending February and net profit is expected to be $20.5m-$21m, a jump of 74 per cent over the previous corresponding period.

Among other retailers, Briscoe Group was up 11c or 2.33 per cent to $4.83; KMD Brands gained 5c or 4.5 per cent to $1.16; and Michael Hill was down 2c or 1.83 per cent to $1.07.

Fisher & Paykel Healthcare increased 38c to $26.60; Ampol rose $2.45 or 7.77 per cent to $34; Scott Technology was up 5c or 1.82 per cent to $2.80; Accordant Group added 4c or 2.41 per cent to $1.70; and NZ Rural Land Co was also up 4c or 3.81 per cent to $1.09.

The retirement village stocks are bouncing around following Ryman Healthcare’s $902m capital raise announcement. Summerset Group was down 10c to $9.50; Arvida Group fell 6c or 5.41 per cent to $1.05; and Oceania Healthcare declined 2c or 2.35 per cent to 83c.

Fletcher Building was down 8c to $4.93; Ebos Group declined 90c or 2.05 per cent to $42.95; Auckland International Airport decreased 13c to $8.62; and Chorus gave up the gains of the day before, falling 37c or 4.23 per cent to $8.37.

In the property sector, Goodman Trust was down 4c or 1.87 per cent to $2.10; and Vital Healthcare Trust declined 4.5c or 1.81 per cent to $2.435.

Energy stocks Manawa shed 13c or 2.52 per cent to $5.03 and Vector was down 11c or 2.58 per cent to $4.15.

Green Cross Health, up 1c to $1.37, has confirmed it is in discussions with Anchorage Capital Partners over selling its community health division.