Business
AGM Trading Statement
AGM Trading Statement.
About this update from Camellia Plc
[{"type":"text","content":"\n\n8 June 2023\nCamellia Plc\n(the \"Company\" or the \"Group\")\n \nAGM trading statement\n \nCamellia Plc (CAM.L) has today issued the following update on trading in the year to date.\n \nThe Group continues to focus on its core Agriculture operations and is divesting non-core assets as appropriate opportunities arise.\nTrading outlook\nTrading in 2023 to date has continued to be mixed albeit it remains very early in the season for a number of our major businesses. Although we still expect revenue to be ahead of that of 2022, taking account of the significant continuing pressure on macadamia prices (discussed below), we now expect that the adjusted profit before tax for 2023 will be below that of 2022. With our substantial cash resources, our investment portfolio and limited gearing, we continue to be well placed to withstand a further period of disruption to our operations and sales.\nAgriculture - Tea\nTea production in Kenya has started positively in comparison to last year. It is however of concern to note the violence being perpetrated against large scale tea operations last month in the Kericho district of Kenya ostensibly as a protest against the use of mechanical harvesting machines. The Group's estates have not been affected and it is hoped that the authorities will be able to maintain order and prevent any repeat of such actions. Malawi production is marginally ahead of last year despite the damage caused by Cyclone Freddy earlier in the year. It is very early in the season for India and Bangladesh although it is disappointing to report that the Dooars in India suffered significant hail damage in March and April.\nTea sale prices are generally below those of last year principally on account of the lack of foreign exchange in the major consuming countries of Egypt, Pakistan and Iran. \nAgriculture - nuts and fruits\nThe avocado harvest in Kenya has yet to get meaningfully underway. Macadamia production in Kenya, Malawi and South Africa is in line with expectations with volumes anticipated to be above those of last year. However , macadamia sale prices have reduced further in the last month and remain under significant pressure.\nThe continuing high cost of food in the UK is the subject of much media comment as indeed is the lack of a reasonable price being paid to farmers for the...