T&G Global Posts Strong First-Half Results Driven by Premium Apple Sales

T&G Global has released its operating results for the six months ended June 30, 2024, reporting a solid financial performance closely following the divestment of its T&G Fresh businesses. The company’s total revenue rose 2.6% year-on-year to $572.3 million, with the Apples division contributing $550.9 million, up from $518.9 million in the prior corresponding period.

Operating profit increased by 30% to $11.6 million. However, after accounting for impairment charges related to the sale of T&G Fresh, the company recorded a net loss of $30 million for the period.

Chairman Benedikt Mangold, representing majority shareholder BayWa of Germany, emphasized that the results reflect the company’s strategic focus on intellectual property-led premium apple varieties to drive global growth.

Chief Executive Gareth Edgecombe noted a particularly strong start to the year for the Apples division, with a 45% increase in sales volume of North American-grown Envy apples to Asian markets. Sales reached 1.1 million tray carton equivalents (TCEs), surpassing budget expectations during key seasonal periods such as Lunar New Year and Tết.

Edgecombe detailed regional sales growth, reporting a 34% increase in revenue in Vietnam, 26% growth in China, and a 10% rise in Thailand compared to the same period last year.

The company’s northern hemisphere apple crop has positioned Asian markets well ahead of the transition to New Zealand-grown premium branded apples, which commenced in May.

The New Zealand apple crop volume grew by 24%, consistent with forecasts and reflecting the maturation of recent Envy plantings.

T&G VentureFruit, the company’s innovation arm, saw revenue increase from $2.9 million to $4 million. Edgecombe highlighted strong commercial interest in expanding its portfolio of apple, pear, berry, and dragonfruit varieties across New Zealand, Asia, Europe, and the Americas.

Mangold expressed confidence that T&G Global will maintain its performance momentum in the second half of the fiscal year.

While the divestment of most T&G Fresh operations will reduce revenue from those segments, the proceeds are earmarked for debt reduction, thereby strengthening the company’s balance sheet.

T&G Global’s shares have traded around $2.20 recently, after reaching a high of $2.70 earlier in the year, reflecting market responses to its strategic repositioning and operational results.