“While our results are not where we want them to be, it is pleasing to see the momentum in the business, particularly in apples, which is the engine room for our growth,” Mangold said.
“With the business now coming out of the difficult post-cyclone period, we are on the edge of realising a sustainable performance uplift from the investment made as part of our apples strategy.”
Divisions
T&G’s apple division drove significant growth for the business, with total revenue for FY24 rising 5% from $819.9m in 2023 to $859.1m in 2024. It accounted for 63% of total T&G revenue.
The sector’s operating profit also rose significantly, up from $10.3m in 2023 to $43.7m in 2024.
T&G Fresh, which produces tomatoes, citrus, berries and stone fruit, reported a fall in revenue, down from $484.3m in 2023 to $455.3m in 2024, a drop of roughly 6%.
However, the division’s operating profit was significantly hit, dropping from $9.8m by 63% to $3.6m.
VentureFruit, T&G’s global plant variety management and commercialisation business, also continued its recovery.
It reported total revenue of $13m, up from $9m in 2023, while it made an operating loss of $4.3m, up from a loss of $14.7m the year prior.
Edgecombe said investments made in T&G’s apples business have paid off.
“The global premium apple market continues to grow, particularly in emerging Asian markets. Our growth strategy is supported by a framework to unlock that growth through an expanded presence in key global markets and across retail and wholesale channels. With this, volumes, revenue and profitability will increase,” Edgecombe said.
According to Edgecombe, T&G Fresh had ideal growing conditions to produce plentiful supplies but faced low consumer demand as households adjusted to a higher cost of living and an uncertain economy.
Key investments including the acquisition of a summerfruit business and the expansion of its Queensland blueberry operations are areas Edgecombe hopes will help the division.
“We broadened our portfolio, acquiring the Hinton’s stone fruit business and leasing their stone fruit orchards in Central Otago, and nearly doubling our Australian blueberry operations. All this work leaves us in good shape to take advantage of improving conditions in the year ahead.”
Outlook
Looking ahead, Mangold and Edgecombe are confident they can deliver a strong financial performance for shareholders in the year ahead, driven by supply chain efficiencies and reduced debt.
In the apples division, the 2024/2025 North American crop is selling strongly domestically and in Asia, positioning the southern hemisphere transition well.
The division is expecting the New Zealand crop to return to a more normalised pattern, with plans to establish a presence in a new market in 2025, although which market was not disclosed.
In T&G Fresh, a focus on margin control and internal cost recovery is hoped to give the division strength in the year ahead, including a new transport management system that will deliver time, fuel and emission savings.
The VentureFruit division intends to refresh its berries strategy in 2025 while developing new market growth opportunities, particularly in India and China.
The division also has plans to commercialise further apple varieties, strengthen its North American breeding partnership investment, and continue to seek acquisitions of unique and superior genetics.
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
