MEDIA RELEASE: 24 August 2017
Record 2016/17 season recounted at Zespri AGM
Zespri reported to around 500 grower-shareholders today at its Annual Meeting on a record 2016/17 season, with global
sales up 19 percent from last season to $2.26 billion on the back of exceptionally high yields.
Pool results
Zespri Chairman Peter McBride explains the high yields and late start to the New Zealand season meant lower per-tray
returns for Zespri Green but continued strong per-hectare returns for the Green business.
“A particular highlight was the performance of SunGold which saw a sharp increase in both volume and per-tray returns –
up 39 percent to $98,838 per hectare and five percent per tray to $8.64,” says Mr McBride.
The Annual Meeting reported on Zespri’s financial year to 31 March, covering the performance of NZ kiwifruit sold in the
2016 season with sales running from April to November each year and Zespri’s counter-seasonal Northern Hemisphere season
with fruit sold from October to March. Most of Zespri’s fruit is from New Zealand and the company also sources fruit
from Italy, France, Korea and Japan to supply key retail customers with Zespri-branded fruit all year round.
Here in New Zealand, Zespri runs four product pools to supply the market: Zespri Green, Zespri Green Organic, Zespri
Gold and Zespri Sweet Green.
Pools (Fruit Categories)2016/17 final
(per tray)2016/17 final
(per hectare)2015/16 final
(per tray)2015/16 final
(per hectare)Zespri Green$4.36$53,555$5.13$56,673Zespri Organic Green$6.86$54,427$7.18$52,917Zespri Gold varieties$8.64$98,838$8.21$71,080Zespri Green14$5.79$45,853$7.01$42,995
Zespri’s Northern Hemisphere supply
Mr McBride outlined to shareholders the growth in Zespri Global Supply, Zespri’s 12 month business.
“Volumes in this business grew from 14.5 million trays to 16.6 million trays for the reported season with sales in this
business growing from $183.6 million in 2015/16 to $215.6 million in the reported period with contributing operating
profit growing from $10.4 million to $11.9 million. A highlight was the strong gold growth of 46 percent from the
previous season (from 3.6 million trays in 2015/16 to 5.3 million trays) and the extra 1,800 hectares of SunGold licence
to be allocated in Europe over the next five years will see European volumes quadruple over the next five years,” says
Mr McBride.
Corporate results
Mr Jager explained Zespri’s corporate income comes from four main revenue streams as outlined below.
Corporate revenue streamAmountIncrease on last seasonEarned fromCommission income from selling NZ fruit (less loyalty premium to growers)$159.0 million
19%$2.02 billion salesCommission income from offshore grown fruit$26.5 million
18%$216.0 million salesRoyalty income from proprietary products$16.7 million
170%54.7 million trays soldRevenue from SunGold licence sales$67.2 million
2500%400 hectares licence released plus treasury stock and shelter belt issuances. No issue in previous year.
Net profit after tax more than doubled from $35.8 million to $73.7 million, due mainly to the $67.2 million in licence
revenue from the New Zealand SunGold tender in 2016.
Upcoming consultation with shareholders over constitutional changes
Official resolutions from the meeting including elections for the Zespri Board and the Director Remuneration Board,
along with approving the annual accounts and appointing the auditor.
More significantly Mr McBride spoke about an upcoming Special General Meeting planned for March next year where Zespri
will seek shareholder approval for constitutional changes to align shareholding more closely with production following
the recently announced changes to the Kiwifruit Export Regulations.
Zespri Chief Executive Lain Jager says the industry is in good heart. “Strong returns and confidence are underpinning
strong orchard values in the sector and Zespri is focused on delivering value for growers by investing to grow demand
around the world,” says Mr Jager.
Ends
Zespri global volume (trays sold)154.3 million131.6 million17%New Zealand-grown137.7 million117.1 million18%- Green83.3 million77.9 million7%- Organic Green3.9 million3.9 million1%- Gold47.9 million32.3 million48%- Green141.5 million1.4 million13%- Other1.1 million1.6 million-31%Non-New Zealand-grown16.6 million14.5 million14%- Green11.3 million10.9 million4%- Gold5.3 million3.6 million46%