6th Sep 2024 14:36
(Alliance News) - Camellia PLC on Friday said it swung to a loss in the first half of 2024, despite growing revenue, after last year's results were boosted by an impairment write back.
The Kent, England-based agricultural firm swung to a GBP11.0 million pretax loss in the six months that ended June 30 from a GBP8.9 million profit the previous year.
Revenue increased 7.2% to GBP105.1 million from GBP98.0 million, while cost of sales were reduced by 3.3% to GBP88.6 million from GBP91.6 million.
However, distribution cost doubled to GBP7.8 million from GBP3.4 million and administrative expenses grew 0.5% to GBP19.6 million from GBP19.5 million.
Due to the reported loss, Camellia decided not to pay an interim dividend, having paid 44 pence per share last year.
Chief Executive Officer Byron Coombs said: "While 2024 has seen a modest improvement in operating performance over H1 2023 overall results are down year on year as last year's results benefited from an impairment write back of GBP18 million due to the agreement to sell BF&M [Ltd]. In addition, H1 2024 saw a rise in financing costs to GBP4.1 million primarily resulting from exchange losses from the strengthening of the Kenyan shilling."
Camellia said the challenging trading conditions experienced last year have eased in the first half although the company continues to face difficulties across its primary markets.
Lower avocado production and macadamia volumes were offset by improved prices, whereas higher tea volumes were partially offset by weaker prices.
"As always, our financial results remain largely dependent on agriculture, and in particular the tea market, where the largest portion of the production and sales take place in the second half of the year. It is therefore premature to provide any firm indication of the likely results for 2024," Camellia said.
Looking ahead, taking into consideration current trends, the company said full year revenue is expected to be broadly in line with GBP272.3 million recorded in 2023.
The company continues to anticipate an adjusted pretax loss for continuing operations between GBP10 and GBP12 million.
Camellia shares were down 5.6% at 4,199.40 pence each in London on Friday afternoon.
By Elijah Dale, Alliance News reporter
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