Monday, March 4, 2024

Delays in Gabrielle claims slash T&G results

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Directors say before-tax losses will be between $60 million and $67m.
T&G’s New Zealand apple crop has now been fully harvested and overall NZ supply volumes are down 19% on last year.
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Listed fresh produce company T&G Global has forecast a stonking loss during 2023 ahead of its full year financial results release on February 29.

The directors say that before-tax losses will be between $60 million and $67m.

T&G Global made an after-tax loss of $900,000 in the 2022 calendar year, when revenue fell by $70m to $1.3 billion.

Last May the directors foreshadowed a bigger loss in the 2023 year of $28m-$34m before tax.

The main reason for the doubling of the losses is the complexity of insurance claims after Cyclone Gabrielle last February.

Chief executive Gareth Edgecombe said about a third of the group’s planted hectares were damaged by the cyclone, with 13% severely damaged and another 22% producing less over the next two to three years.

“Our claim from the damage caused by Cyclone Gabrielle has caused delays in finalising the value of the insurance claim receivable at balance date (December 31),” he said.

The T&G share price is around $1.90, having traded in a range from $2.20 to $1.80 during the past year. But it is down more than 30% since early 2022.


In Focus podcast | 9 February

This month marks one year since Cyclone Gabrielle ripped through the eastern North Island. Farmers, growers and communities faced a massive recovery as they worked to rebuild infrastructure, supply chains and get the land back into productive shape.

For this week’s show, Bryan sits down with Rod Vowles, who farms just east of Waipawa a few kilometres from the Tukituki River. His story of survival is astonishing.

Then, Karen Morrish from Apples and Pears NZ to see how Hawke’s Bay growers are faring as the harvest gets under way.

And, Federated Farmers national board member Sandra Faulkner shares how Tairāwhiti farmers are getting on up the coast.

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