Outstanding recovery is complete
quate all-year supply and is keeping up with strong demand. The cooperative has sales and marketing programmes in 59 countries.
Over the past two years, Zespri released 800ha of SunGold licences and will be considering three additional tranches of 400ha each year up to 2020. Zespri also said 1800ha of SunGold licences would be allocated to Europe over the next three years, at least doubling the offshore production of 16.6 million trays (in the 2016/17 financial year).
In this period, Zespri sold a record 137.7 million trays of New Zealandgrown kiwifruit (including Green), taking its global sales to $2.26 billion, an increase of 19 per cent on the 2015/16 year.
Zespri chairman Peter McBride told the annual meeting: “We can be satisfied overall with performance in the season, with a good result delivered despite the challenges of a sharp increase in supply and a relatively late harvest. The task ahead is to continue to deliver long-term value for growers and shareholders through consistent and disciplined implementation of our strategy.”
He said Zespri achieved an average per-tray return for the Gold pool of $8.64 — up from $8.21 in 2015 — despite supply increasing to 48.5 million trays from 32.6 million trays in 2015/16.
“The customer and consumer response to SunGold continues to be very positive, supporting our confidence in market demand.”
Zespri is set to hit $2.45 billion in sales this year and has a target of reaching $4.5 billion by 2025.
The projected gold returns to growers this year is $110,000 per hectare, up from $98,838 in 2016/17, and $55,000 for green, up from $53,555. The higher-yielding SunGold sold for $8.64 per tray.
Over the past two years Zespri’s share price has moved from $1.80 to $7.25 and the board approved a total dividend of 25 cents a share for the 2016/17 financial year.
Zespri’s successful growth strategy has been executed by former chief executive Lain Jager and driven by McBride and fellow directors Bruce Cameron (deputy chairman), Jonathan Mason, Tony de Farias, Paul Jones, Peter Springford, Nathan Flowerday and Teresa Ciprian.
Zespri has 21 offices around the world and nearly half of its 500 staff work outside New Zealand.
New Zespri chief executive Don Mathieson earlier said that the cooperative was facing increasing competition, and its focus was to continue to invest in its markets.
More and more consumers were turning to healthier foods. Mathieson told the NZ Herald: “Consumers have many choices so it is very important that we stay relevant and we continue to invest in the messaging to consumers.
“The goal is to double sales by 2025. We think it is a realistic target because of the growing demand for nutritious products around the world and how Zespri fits into that.” The a2 Milk Company has embarked on an aggressive growth strategy, making the most of increasing interest in its A1 protein-free products from naturally occurring cows’ milk.
The company is experiencing strong growth and market share for its a2 Platinum infant formula in Australia and China, and for its branded a2 Milk (fresh milk and milk powders) in Australia.
The a2 Milk Company has also turned its attention to developing export opportunities in Britain, the United States and emerging markets. There is increased investment in building brand awareness in the US, and the British market is providing positive operating earnings.
The a2 Milk Company is intent on building a broader portfolio (from fresh milk to customised infant, children and adult nutritional products) centred on the unique strengths of the A1 protein-free proposition.
A number of product launches will take place in the 2018 financial year, and the company has just released a2 Platinum Stage 4 infant formula for children 3 years and above, and extended its milk powder range.
Deloitte Top 200 judge Cathy Quinn said a2 Milk was operating in a tough dairy industry but has played its cards well.
“They had a clear growth strategy, they planned their key milestones and they have been phenomenally successful.
“They are tapping into what Chinese consumers are looking for, and they have provided 119 per cent total shareholder return in the 16/17 financial year.”
For the year ending June 30, 2017, a2 Milk achieved total revenue of $550m, an increase of 56 per cent on the previous year, and the net profit was $90.6m, a leap of 198 per cent. Tourism Holdings, which listed on the NZX in 1986, has become a global force in the recreational vehicle (campervan) sector.
The company is setting the pace by providing campervans for rent and sale in New Zealand, Australia, United States and Britain.
It has added a significant digital platform to its operations, and is concentrating on expanding its business in North America.
Tourism Holdings bought Californian-based rental company El Monte and formed a partnership with Roadtrippers, an American road travel app and data business. The joint venture, which includes the GeoZone business, provides Tourism Holdings customers with valuable travel information in New Zealand, Australia and the US.
In announcing the latest financial result, Tourism Holdings chief executive Grant Webster said the purchase of El Monte took the company to a clear number two position in the US.
The investment in Roadtrippers and the pilot of Mighway (a peer-topeer motorhome rental service) all reset the way Tourism Holdings thinks about North America.
“We operate in an industry that’s in a growth phase, we deliver compelling experiences and we are a business that has improved, is still improving and is prepared to take some careful risk for future substantial growth.”
Tourism Holdings increased its net profit by 24 per cent to $30.2m on revenue of $341m. The company has forecast a net profit between $36m and $39m for the year ending June 30, 2018, which includes the first full year of El Monte operations. It has has targeted a net profit of $50m for 2020.
The judges said Tourism Holdings has benefited from an uptick in the tourism industry, but has developed a clear growth strategy in the US, Australia and Britain.