Zespri’s 2023/24 Financial Results Deliver Record Value Off Reduced Volumes

2023/24 Financial results summary:

• Zespri global operating revenue: NZ$4.21 billion (includes licence revenue)
• Zespri global fruit sales revenue: NZ$3.99 billion
• Total 2023 Season New Zealand-grown fruit and service payments including loyalty premium: $2.29 billion
• Zespri global trays sold: 164.2 million trays
• Zespri’s net profit after tax: NZ$173.3 million (includes licence revenue)
• Expected Total Dividends: NZ$0.85 per share

Zespri’s 2023/24 Season financial results have delivered record average per tray returns to growers across all categories other than Organic SunGold Kiwifruit.

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, reflecting improved fruit quality and strong pricing secured throughout the season.

Zespri’s net profit after tax was $173.3 million, down from $238.7 million in 2022/23, mainly driven by reduced licence revenue from lower pricing per hectare than 2022/23. The total net dividend is NZ$0.85 cents per share.

CEO Dan Mathieson says the results are a reflection of the industry effort to lift fruit quality, along with strong consumer demand for Zespri Kiwifruit.

“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.

“It’s really pleasing to see a significant increase in Green returns, up from $5.78 to $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.

Mr Mathieson says 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.

“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 and offers us a great platform to start our season in our Asia Pacific markets.

“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.

Zespri’s Non-New Zealand Supply season sales increased to $654.2 million, up from $519.3 million on the back of increased volumes sold of 27.2 million trays, improved pricing and a reduction in quality costs.

“Our offshore production bases are a critical part of Zespri’s Global Supply strategy helping us to build the brand, to hold shelf space and to maintain our retail and supply partnerships.

“It’s pleasing to see ZGS sales increasing to support the launch of our New Zealand sales season, helping deliver stronger returns to growers in New Zealand and around the world.

Mr Mathieson says the results are a credit to the way the industry has responded to recent challenges, and that it’s been pleasing to see the positive momentum continue with the fantastic start made to the 2024/25 season.

“In addition to today’s 2023/24 season results, we’re delighted at the strong start we’ve made to our current 2024 season.

“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. 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 maximise value for growers which will remain our focus as we move further into the season,” Mr Mathieson says.

Final 2023/24 New Zealand Grower Returns

*NB: Zespri RubyRed Kiwifruit is in its second year as a commercial pool. Forecast per hectare returns have been influenced by a high proportion of productive hectares returning low yields impacted by vine age. 149 hectares producing for 2 years or less have returned an average yield of 1,385 trays per hectare and a forecast per hectare return of $36,470 per hectare. 4 hectares producing for greater than 2 years have returned an average yield of 5,263 trays per hectare and a forecast per hectare return of $138,633 per hectare. 6 hectares with mixed aged vines (with vine age of both 2 years or less and more than 2 years) have returned an average yield of 3,155 trays per hectare and a forecast per hectare return of $83,091 per hectare. For RubyRed 2024 season publications of OGR per tray returns, the 2023 season per tray return comparative will be restated from $26.34 to $18.87, to account for NSS Size 46 fruit being included in Standard Supply in 2024.

Note: All financial results are in $NZD and are reported from Zespri’s Alternative Revenue Statement.

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