T&G Global (TGG) H1 2024 earnings summary

Executive summary

• Revenue rose 7% year-over-year to $820.1 million for the six months ended 30 June 2024, driven by strong performance in Apples and new facilities, despite lingering cyclone impacts and weak domestic pricing.

• Operating loss narrowed to $2.6 million from $11.6 million in the prior year, reflecting improved operational performance.

• Net loss after tax increased to $18.6 million, impacted by a $12.7 million one-off, non-cash deferred tax adjustment due to legislative changes.

• Strategic investments in automation, new packhouse, and Queensland berry farm are expected to deliver increased returns and efficiency gains; insurance claim from Cyclone Gabrielle is ongoing.

Financial highlights

• Revenue: $820.1 million, up from $765.3 million year-over-year.

• Operating loss: $2.6 million, improved from $11.6 million loss year-over-year.

• Net loss after tax: $18.6 million, compared to $15.7 million loss year-over-year.

• Basic and diluted loss per share: (17.5) cents, versus (14.5) cents year-over-year.

• Cash and cash equivalents at period end: $53.4 million, up from $48.2 million year-over-year.

Outlook and guidance

• North American apple crop for 2024/2025 expected to be good quality, with volumes estimated to rise 17% to 5.5 million TCEs.

• Easing inflation anticipated to benefit cost pressures, operations, and consumer demand.

• Focus remains on cost reduction, efficiency optimization, and revenue growth to achieve medium-term strategic and financial objectives.

• Continued resilience building in response to weather-related disruptions and market volatility.