Saturday, April 20, 2024

EastPack boosts annual revenue

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EastPack, the biggest post-harvest kiwifruit business, achieved higher volumes, profits, rebates and dividends in its latest year.
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Volumes packed for its own shareholder/growers jumped 5.7 million trays to 38.7m in the year ended December 31.

That pushed revenues up to $161m from $136.2m a year earlier and the operating profit was $11.2m, up from $8.1m.

The profit improvement let directors increase the rebate to transacting shareholders to a total $9.8m from $6.1m (27c a share, from 20c).

Holders of the investor shares receive an 8.64c a share dividend, with full tax credits, up from 7.2c a year earlier.

The continuing rebound and confidence in the industry after the Psa outbreak six years ago was very pleasing, chairman John Loughlin said.

The bumper crop provided a challenge for packing and cooling but EastPack had achieved excellent production efficiencies and the volumes meant high asset use throughout the year.

The capital development programme of the last three years, including near-infrared grading technology at the Te Puke packhouse, was starting to provide a significant return on investment.

As well as the volumes for shareholders, the company also packed 851,000 trays for other growers.

The Hayward crop was a record, with growers achieving an average orchard yield above 12,000 trays a hectare. In 2010, before Psa, the average had been about 7500 trays.

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