Camellia PLC Trading Update (2552H)
November 23 2022 - 2:44AM
UK Regulatory
TIDMCAM
RNS Number : 2552H
Camellia PLC
22 November 2022
22 November 2022
Trading Update
Camellia Plc
Camellia Plc (CAM.L) issues the following update on trading for
the year.
Trading
Agriculture - Tea
Prolonged adverse weather conditions in India combined with a
consequential increase in pest activity in a number of estates has
resulted in significantly lower than average crop volumes. With the
production window heading towards its close it is now clear this
lost volume is not capable of being recovered and production for
the year is now expected to be broadly in line with that of last
year. While orthodox tea prices have remained firm, CTC prices have
been lower than anticipated.
Our Bangladesh operation's crop has also continued to be
adversely affected by weather conditions however the effect of this
has been partially offset by better than expected average prices.
The crop loss, together with the previously reported significant
wage rate increase (backdated to the start of 2021) and the impact
of the three-week strike at a key point in the season, means our
tea operations in Bangladesh will record a loss for the full
year.
Agriculture - nuts and fruits
Our macadamia harvest is almost complete with kernel production
now expected to be c18% ahead of last year. However, the kernel
market continues to be adversely affected by the large inventory of
smaller style products and with China's re-opening delayed, we now
expect lower prices for our products for the remainder of this year
and into next.
The Hass avocado season has just concluded with our final
volumes marginally ahead of expectations. Prices have held up well
in the market in the last few months and if this continues average
prices for our Hass crop will be significantly higher than we
anticipated.
Other agriculture
Our cereal operation in Brazil has continued to perform well and
is seeing continued improvements in market conditions for its
products.
The harvest at Bardsley Horticulture is continuing. Cropping
levels are above those of last year but inflationary impacts on the
cost of seasonal labour, fuel, electricity and chemicals have
increased the cost of production significantly and this has not
been met with improved market prices. This has led to unprecedented
pressure on margins, impacting both profit and cash. There are
indications that the quality of the 2022 Bramley harvest is
significantly below average due to the hot dry summer. It is too
soon to assess the quality of our other varieties.
Other Investments
AJT Engineering has continued to face significant challenges due
to supply chain delays which have continued to impact on production
scheduling and hence profitability. It has also seen a delay to a
significant contract within its site services division. Although
results overall for AJT is much improved on that of last year, the
business is now expected to record a significant loss in the
current financial year.
Outlook
As is usual for this time of year market prices for tea in in
India and Bangladesh will be critical to our full year results, as
will the prices achieved for avocados. However, if current
conditions continue and assuming a normal H2 for BF&M, revenue
is expected to be approximately 17-18% above that of last year and
the adjusted profit before tax* for the Group expected to be
approximately 65 - 70% below that of last year. 2022 results will
include a full year of trading for Bardsley Horticulture and also
reflect the significant impact of inflation on wages and input
costs across the Group.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
* adjusted profit before tax seeks to present an indication of
performance which is not impacted by exceptional items or items
considered non-operational in nature and for example it excludes
impairment charges, gains/losses on disposal of assets and
restructuring costs.
Enquiries
Camellia Plc 01622 746655
Malcolm Perkins, Chairman
Susan Walker, CFO
Panmure Gordon 020 7886 2500
Nominated Adviser and Broker
Emma Earl
Erik Anderson
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END
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