T&G Global Limited Analysis

Overview

T&G Global Limited is engaged in distributing, marketing and exporting fresh produce. The business was started as a fruit and flower shop by Edward Turner in 1897. He was later joined by nine sons and the business grew to became E Turner & Sons Ltd. This amalgamated with a grower co-operative in 1921 to form Turners & Growers Ltd.

In December 2002 the group acquired 100% of pipfruit exporter ENZA Ltd, owned by Guinness Peat Group, in return for 44.2m of Turners shares worth $101.9m. This transaction resulted in GPG gaining control of the merged entity.

In 2004 TUR separated the ENZA Foods manufacturing operations into a stand-alone company, owned independently by TUR shareholders. In September 2004 it made a compliance listing on the NZX, with no new shares being issued. Major divisions are: Turners and Growers Fresh Ltd - fruit & produce & flower wholesalers, auctioneers and distributors, importers, exporters, transport operators, prepackers and produce container hirers; Status Produce Ltd - glasshouse tomato production and other covered crops; packhouse operators; ENZA Ltd - world-wide pipfruit exporters and coolstore operators.

In February 2008 the company declared its takeover bid for Kerifresh Ltd unconditional. Kerifresh is a major lemon, mandarin and kiwifruit grower/packer in Kerikeri. TUR said the purchase will strengthen its standing in the citrus fruit category.

In 2012 BayWa, a German investment company purchased 72.5 percent of Turners & Growers.

The company launched its current corporate brand in 2014.

T&G is listed on NZX in May 2015 under the name of Turners & Growers Limited ("TUR"). It changed its current name and code in May 2015.

Performance

The following information was extracted from T&G Global Limited's Full Year Results, released 03 March 2025

Improved Apples performance signals bounce back for T&G Global

At a glance:

• Revenue: $1.36 billion, up from $1.33 billion
• Operating profit/(loss): $12.7 million, up from ($45.6 million)
• Net loss before tax: ($6.8 million), up from ($64.2 million)
• Net loss after tax: ($9.9 million), up from ($46.6 million)

High demand for T&G Global’s premium ENVY™ and JAZZ™ branded apples, coupled with higher pricing in global markets, has helped the Company achieve good momentum in its bounce back from the impact of Cyclone Gabrielle.

For the year ending 31 December 2024, the Company recorded a full-year loss before tax of $6.8 million for the year compared to a loss before tax of $64.2 million in 2023, and an operating profit of $12.7 million compared to a loss of $45.6 million in 2023.

T&G Global Chair, Benedikt Mangold, said the results demonstrate great improvement.

“It was a year of continued recovery, following the devastating effect of Cyclone Gabrielle. While our results are not where we want them to be, it is pleasing to see the momentum in the business, particularly in Apples, which is the engine room for our growth,” said Mr Mangold.

“Over the last six years, we have invested significantly in our Apples business to enable our growth, including automation-ready orchards with high-performing premium varieties and our world-class post-harvest facility. With the business now coming out of the difficult post-Cyclone period, we are on the edge of realising a sustainable performance uplift from the investment made as part of our Apples strategy.”

Apples revenue rose 5% to $859.1 million, with the business achieving an operating profit of $43.7 million, compared to $10.3 million in the year prior.

T&G Global Chief Executive, Gareth Edgecombe, said the Apples business accounted for 63% of T&G’s revenue of $1.36 billion which was up 2% on 2023.

“Following the impact of the cyclone, this year’s results represent a significant performance turnaround. It is heartening to see the investments made in our Apples business supporting better performance and good growth,” said Mr Edgecombe.

“The global premium apple market continues to grow, particularly in emerging Asian markets. Our growth strategy is supported by a framework to unlock that growth through an expanded presence in key global markets and across retail and wholesale channels. With this, volumes, revenue and profitability will increase.”