Exports to drive Ariston revenue
The average tea export pricing improved by 11 percent during the period.
ARISTON Holdings Limited will bank on export markets to improve revenue in the wake of the enhanced quality of its horticultural produce, the listed firm has said.
The firm produces stone and pome fruit, passion fruit, avocados, potatoes, poultry, tea and macadamia nuts, most of which have been boosted by firm prices on the export markets, compared to a depressed domestic market.
Last week, Ariston said its loss position for the six months ended March 31, 2017 narrowed by seven percent to US$1,99 million, from US$2,14 million during the same period in 2016.
It said prices were likely to remain firm and volumes were expected to increase, with significant export orders on its book.
“Export price forecasts are very positive and the crop volume is expected to be in line with expectations. Year-end (tea) production is expected to be comfortably ahead of prior year. The average tea export pricing improved by 11 percent during the period. The quality of macadamia nuts harvested so far has been the best ever achieved,” the firm said in its results commentary.
The firm’s turnover, at US$3,48 million during the reporting period, was eight percent lower than the US$3,79 million reported in the prior comparable period.
Ariston said this was a result of the late commencement of macadamia harvesting.
Chief executive officer, Paul Spear, said although late, the macadamia harvest for this season would surpass that achieved during the prior comparable period.
Southdown Estates contributed 71 percent to Ariston’s revenue compared to 75 percent in prior comparative period.
Claremont Estates contributed 20 percent to the group’s revenue compared to 16 percent in 2016, while Kent Estates’ contribution to the group’s revenue was unchanged at nine percent.
Spear said loss from operations during the review period was US$1,4 million compared to US$1,12 million during the prior comparable period.
He said finance costs declined to US$710 000 from US$2,05 million during the comparative period after converting shareholder loans to equity in August last year.