Zespri’s 2023-24 season financial results have delivered record average per-tray returns to growers across all categories other than Organic SunGold Kiwifruit, the company said.
While a difficult growing season resulted in global sales volumes falling 10.5% to 164.2 million trays from 183.5 million in 2022, global kiwifruit sales increased 2% to 3.99 billion New Zealand dollars, according to a news release. The higher sales reflect improved fruit quality and strong pricing secured throughout the season, the release said.
Zespri’s net profit after tax was NZ$173.3 million, down from NZ$238.7 million in 2022-23, mainly driven by reduced license revenue from lower pricing per hectare than 2022-23. The total net dividend is NZ$0.85 per share.
“We’re delighted to be able to deliver such a strong set of returns to growers, including record per tray returns for all categories other than Organic SunGold, particularly after such a challenging period for the industry,” Zespri CEO Dan Mathieson said in the release. “It’s really pleasing to see a significant increase in green returns, up from NZ$5.78 to NZ$9.55 per tray, which is welcome news given how tough it’s been for our green growers in recent seasons and the difficult growing conditions we’ve faced. These strong per-tray returns have been driven by improved quality and good pricing alongside our investment in the brand and ability to build demand ahead of supply.”
Mathieson said that there were some standout results in some of Zespri’s major markets.
“We’re really pleased with how things have gone in Europe, particularly in being able to deliver really strong value for our green growers, and that’s been supported by strong value for green fruit in Japan too,” he said. “China was a standout in terms of being able to deliver strong value for SunGold, reflecting the demand we’re continuing to see for this variety.”
RubyRed kiwifruit is also continuing to perform strongly, he said.
“It’s been tougher for our organic categories, particularly on a per hectare level where a really big drop in yields has made it challenging, and continuing to lift per hectare returns across all categories as we manage greater volumes remains a focus for us looking ahead,” Mathieson said.
Zespri’s non-New Zealand Supply season sales increased to NZ$654.2 million, up from NZ$519.3 million on the back of increased volumes sold of 27.2 million trays, improved pricing and a reduction in quality costs, the release said.
In addition to the 2023-24 season results, Zespri is delighted at the strong start to its current 2024 season, he said.
“Feedback from customers on quality has been really positive, with a lot of excitement at the prospect of being able to access more fruit this season,” Mathieson said. “Sales are also exceeding our expectations in key markets. The strong demand for our fruit is really encouraging, and that’s helping our efforts to maximize value for growers, which will remain our focus as we move further into the season.”
2023-24 financial results summary:
- Zespri global operating revenue — NZ$4.21 billion (includes license revenue).
- Zespri global fruit sales revenue — NZ$3.99 billion.
- Total 2023 season New Zealand-grown fruit and service payments including loyalty premium — NZ$2.29 billion.
- Zespri global trays sold — 164.2 million trays.
- Zespri’s net profit after tax — NZ$173.3 million (includes license revenue).
- Expected total dividends — NZ$0.85 per share.
Average returns per tray (NZ$):
- Zespri Green — $9.55.
- Zespri Organic Green — $12.53.
- Zespri SunGold — $12.92.
- Zespri Organic SunGold — $14.71.
- Zespri Green14 — $10.63.
- Zespri RubyRed — $26.3.
