CAMELLIA PLC
INTERIM RESULTS
Camellia Plc (AIM:CAM) announces its interim results for the six months ended 30 June 2022.
Malcolm Perkins, Chairman and Interim CEO of Camellia, stated:
“The combination of extreme weather conditions, continuing disruption on account of the pandemic, war in Ukraine, inflation, supply chain delays and industrial unrest have all conspired to make this year one of the most difficult we have encountered. We are pleased to report that the majority of our operations are weathering this unprecedented storm well, Camellia remains financially strong and that we are continuing our strategy of diversifying our agricultural production by both crop and origin.
Revenues increased 19% in the period from improvements in all divisions and reflecting the acquisition of Bardsley England. Due to the nature of our cropping patterns and sales, we booked a loss for the period. The H1 loss before tax is higher at £15.6 million (2021 H1: £7.8 million loss) in large part due to the impact of stock market volatility on BF&M's investment valuations and due to significant wage increases in India and Bangladesh. Our financial results for the full year remain largely dependent on Agriculture where the majority of harvesting, and sales, takes place in the second half of the year. This year, BF&M, where stock market performance and the prevalence of hurricanes in the second half of the year are critical, will also be a significant factor in our results, as will the ongoing wage negotiations in Bangladesh.
In light of further wage negotiations in the past few days between the Bangladesh government and tea workers, the recently announced 20.8% increase in Bangladesh wages has been amended to a 41.7% increase. Whilst negotiations have not yet concluded, assuming the proposed increase takes effect, we now expect adjusted profit before tax for the full year to be below that of last year.
Once again I should like to thank all our staff across the world for their continuing contributions both to the business and their local communities in extremely difficult circumstances.”
Operational highlights
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Tea: o § higher average tea prices in India and Kenya, offset in part by lower tea production down 10%, o § price pressure in Bangladesh and Malawi as well as margin impact from significant wage increases in India and Bangladesh |
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Macadamia production volumes expected to be 20% up though average selling prices are lower |
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Avocado production expected to be significantly higher than last year. Prices have been volatile and are difficult to predict for the full year |
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Bardsley England is showing improved crop prospects and lower losses are expected than for the prior year |
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Arable crops generally enjoyed a strong first half due to continued firm pricing for soya and maize, whilst other speciality crop results have been mixed. |
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Mixed performance from other businesses with significantly lower results from Associates (BF&M) but improved trading in both Engineering and Food Service |
Strategic highlights
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Continued focus on expansion of agricultural interests and reduction in non-agricultural activities |
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BF&M strategic options review has commenced with results awaited |
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Further progress made on geographic and crop diversification |
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o In Tanzania, 96Ha of avocado planted in the first half of the year bringing the total to 152Ha, with a further 90Ha anticipated to be planted by the end of H2 |
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o In South Africa, 40Ha of avocado has been planted with a further 40Ha to be planted in the last quarter of the year |
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Camellia remains financially strong with significant liquid resources |
Financial highlights
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Six months ended 30 June 2022 |
Six months ended 30 June 2021 |
Year ended 31 December 2021 |
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£'m |
£'m |
£'m |
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Revenue – continuing operations |
125.8 |
105.5 |
277.2 |
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Adjusted (loss)/profit before tax* |
(17.1) |
(7.3) |
8.8 |
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Significant separately disclosed items and provision releases |
1.5 |
(0.5) |
(1.7) |
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(Loss)/profit before tax for the period |
(15.6) |
(7.8) |
7.1 |
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(Loss)/profit after tax for the period |
(19.1) |
(6.1) |
4.5 |
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(Loss)/earnings per share |
(724.1)p |
(220.9)p |
83.3p |
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Dividend per share for the period |
44p |
44p |
146p |
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Net cash and cash equivalents net of borrowings |
37.1 |
62.1 |
54.0 |
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Investment portfolio market value |
35.5 |
51.3 |
40.2 |
* Adjusted (loss)/profit before tax is (loss)/profit before tax from continuing operations excluding separately disclosed significant items (eg impairments, restructuring costs, costs of acquisitions, profit/(loss) on disposal of property or other assets)
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
The interim report will be available to download from the investor relations section of the Company's website www.camellia.plc.uk