T&G Global has reported improved financial results for the year ending December 31, 2024, attributing the recovery to strong demand and higher pricing for its premium apple varieties. The company recorded a pre-tax loss of $6.8 million, a significant improvement from the $64.2 million loss reported in 2023. Operating profit stood at $12.7 million, compared to a $45.6 million loss in the previous year.
The company's apple segment saw revenue rise by 5% to $859.1 million, generating an operating profit of $43.7 million, up from $10.3 million the prior year. T&G Global Chair Benedikt Mangold acknowledged the company's recovery from the effects of Cyclone Gabrielle, stating that while results were not yet at the desired level, the business had gained momentum, particularly in its apple operations.
Investments in apple orchards, automation, and post-harvest infrastructure over the past six years have positioned the business for long-term growth. The company emphasized its focus on premium apple varieties and expanding its market presence, particularly in Asia.
Chief Executive Gareth Edgecombe highlighted that apples accounted for 63% of the company's total revenue of $1.36 billion, which represented a 2% increase from 2023. He noted that global demand for premium apples continues to grow, particularly in emerging markets, and the company aims to expand its presence in key regions to drive future growth.
T&G Fresh, which includes the company's Australian operations, faced a challenging year with revenue declining by 6% to $455.3 million from $484.3 million in 2023. The business recorded a 63% drop in operating profit to $3.6 million.
Despite favorable growing conditions leading to abundant supplies, consumer demand remained weak due to rising living costs and economic uncertainty. However, the company reported operational improvements, the acquisition of a summerfruit business, and an expansion of its Queensland blueberry operations.
VentureFruit, the company's plant variety development division, increased revenue by 44% to $13.0 million while reducing its operating loss to $4.3 million. The division benefited from strong market pricing for branded apple varieties and secured licensing agreements for additional plantings in the United States and China.
The company also introduced a new apple variety, JOLI, which has attracted grower interest in the U.S. and Europe. The first large-scale plantings in New Zealand are scheduled for Canterbury in 2025 and 2026.
Looking ahead, T&G Global expects the 2025 apple harvest in New Zealand to be of high quality, with a focus on improving efficiencies and market positioning. The company anticipates that improved consumer sentiment will support its fresh produce division, while VentureFruit will continue to develop new varieties and expand market opportunities.
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T&G Global
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Email: info@tandg.global
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