Camellia PLC Trading update
RNS Number : 8296C
21 October 2020
21 October 2020
Camellia announces that due to a number of factors, it currently
expects to significantly exceed market expectations for underlying
profit before tax for the year ended 31 December 2020.
As stated in the interim report for the six months ended 30 June
2020 the impact of the loss of tea crop in north India due to
COVID-19 has led to significantly higher average selling prices
than in 2019. Average prices are still high and although are now
showing signs of the usual seasonal decline, the rate of this
decline is slower than expected. This reflects continued lack of
supply in the market a situation repeated recently in other areas
of our fresh produce businesses. In addition, our tea production in
Kenya has been higher than anticipated.
In Bangladesh recent stronger than expected tea prices have been
in large part offset by a higher than expected wage agreement
relating to the years 2019 and 2020. The remaining operations
continue to trade broadly in line with expectations.
Whilst markets remain volatile, underlying profit before tax* is
now expected to be marginally in excess of GBP10 million.
Separately and not reflected in underlying profit, legal and
other costs related to group claims in H2 are expected to be
significantly higher than those experienced in the first half of
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
* underlying profit before tax is profit before tax excluding
impairment charges, gains on sale of assets and certain legal and
Camellia Plc 01622 746 655
Tom Franks, CEO
Susan Walker, CFO
Panmure Gordon 020 7886 2500
Nominated Adviser and Broker
William Clutterbuck 07785 292 617
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(END) Dow Jones Newswires
October 21, 2020 11:04 ET (15:04 GMT)