[Press Release] Zespri Marks Record 2020/21 Season

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2020/21 financial results summary

• Zespri global operating revenue: NZ$3.89 billion
• Zespri global fruit sales revenue: NZ$3.58 billion
• Total New Zealand-grown fruit and service payments including loyalty premium: NZ$2.25 million
• Zespri global trays sold: 181.5 million trays
• Zespri’s net profit after tax: NZ$290.5 million
• Expected total dividends: NZ$1.33 per share

May 27, 2021 – Increased sales, the ongoing expansion of Zespri SunGold kiwifruit production and great quality fruit underpinned by strong international demand have delivered a record result for Zespri’s 2020/21 season, returning record per-tray returns across all categories.

Released today, Zespri’s 2020/21 financial results show total global revenue generated by fruit sales reached NZ$3.58 billion, up 14% on the previous year, while total global operating revenue increased by 16% to NZ$3.89 billion. Global sales volumes were up 10% on the previous year to 181.5 million trays.

Direct returns to the New Zealand industry increased by 15% to NZ$2.25 billion in spite of the considerable uncertainty generated by the COVID-19 pandemic. Earnings are spread through many regional communities including the Bay of Plenty, Northland, Nelson, Gisborne, and the Waikato, providing support to people, communities and businesses across the country.

There were strong returns on both a per-tray and per-hectare basis:

• The average return for Zespri Green per tray increased to NZ$7.51, with the average return per hectare reaching NZ$76,722.
• Zespri Organic Green reached an average return per tray of NZ$10.53 and an average per-hectare return of NZ$66,453.
• The average return for Zespri SunGold kiwifruit increased to NZ$12.46 per tray, and the average return per hectare was also a record NZ$177,846.
• Zespri Organic SunGold kiwifruit saw a per-tray return of NZ$15.36, with the average per-hectare return reaching NZ$158,599.
• Zespri Sweet Green achieved an average return per tray of NZ$10.14 and an average return per hectare of NZ$56,853.

Zespri’s non-New Zealand supply sales increased to NZ$472.8 million, while Zespri’s net profit after tax is NZ$290.5 million, up from NZ$200.8 million on the previous year.

Zespri Chairman Bruce Cameron says the results reflect the continued strong demand for Zespri kiwifruit around the world, boosted by the industry’s hard work and investment to increase demand and supply.

“After a season where we were forced to make such significant changes to our operations with a focus on keeping our people safe, getting our fruit to the world, and continuing to invest for the future, it’s pleasing to see such encouraging results for the industry,” says Cameron.

“Demand for both Zespri Green and Zespri SunGold kiwifruit increased and we’re pleased to see growing interest in our newest variety, Zespri Red, which is a testament to our industry’s ongoing investment in innovation and finding new ways to add value for New Zealand and our international production bases.”

Zespri’s Chief Executive Officer Dan Mathieson says the 2020/21 season again showcased the strength of the Zespri brand in delivering value, attracting new consumers and supporting communities.

“The unity of our industry allowed us to respond effectively to incredibly difficult conditions around the world. That response was underpinned by our investment in the Zespri brand, the trust we have built up with our customers and consumers globally and the resilience and adaptability of our supply chain and sales and marketing teams.

“The efforts of our people right throughout Zespri and our supply chain were critically important and we’re incredibly proud of the way they responded and of those members of our team who are still dealing with the ongoing impacts of COVID-19 around the world.

“We’re also encouraged by the growth in sales of our non-New Zealand supply, with strong returns to our partner growers in Italy, France, Japan and Korea. These production bases are a critical part of Zespri’s 12-month supply strategy. 12-month supply means we’re available to consumers year round, hold our shelf space and commercial partnerships, ensuring Zespri growers maximize the benefit from the increased international demand we’re creating, making our marketing and promotional spend more efficient and delivering stronger returns to growers in New Zealand and around the world.”

Outlook 2021

With the 2021/22 New Zealand season now well underway, nearly all Zespri SunGold kiwifruit has been submitted into inventory and the harvest of Green is in full swing.

Mathieson says Zespri is expecting another record-breaking crop of Zespri kiwifruit this year, again underpinned by the expansion of Zespri SunGold kiwifruit production as well as Zespri Red.

“Our sales and marketing programs are in full swing and demand from our markets is incredibly strong with our fruit selling quickly. However, we are facing headwinds including industry capacity constraints, rising costs and securing enough people to get our fruit to the world, as well as pandemic-related disruption to our shipping channels and distribution in some of our markets.

“We’re working hard as an industry to overcome these challenges in order to deliver ongoing positive value to all our stakeholders and New Zealand as we continue to grow as an industry, though we do expect they will remain an issue in the medium term.”

People and communities

“We know that our success is only possible with the support of our communities and it’s important to us that we continue to recognize that,” says Mathieson.

“We’re delighted a record NZ$2.25 billion will be returned to the New Zealand kiwifruit industry, and to know that those returns will support jobs and communities around the country.

“In 2020/21, Zespri partnered with KidsCan and Ronald McDonald House for the first time – two inspiring organizations who work hard to support those in need. We also shared over 100 tonnes of fresh kiwifruit with organizations around the country, so more people could access the health benefits.

“We were also pleased to kick off the first Zespri Young and Healthy Virtual Adventure, helping teach 20,000 young New Zealanders about the importance of eating well, exercising and looking after the environment. And we supported a number of important causes in our markets around the world as part of our purpose of helping people, communities and the environment to thrive. These efforts will grow as our industry does and as we focus on ensuring we have a positive impact around the world.”

Image: Pixabay