If the company now forecasts a group EBITDA of between $32.5m and $33.5m, than this actually would be an earnings upgrade ;
But anyway - it is a seasonal business and I assume that competitors are hit in a similar way, though I am a bit surprised about the reduced harvest: We had (on our mid Canterbury "orchard") this year a bumper harvest ... but obviously - not everybody has as great climatic conditions as we have (and no, we neither grow Kiwifruit nor Avocado);
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Agree BP. I don't think this downgrade will have much effect on investors or SP. People invested in this game are there for the long term and take the good with the bad in this industry.
big downgrade . in nz not surprised hot weather means smaller fruit and more to fill a tray. AUS big dis appointment but again hot weather is the cause.
As i mentioned sometime back it wasnt worth re entering as growth would be constrained for a while in this company
Agree BP. I don't think this downgrade will have much effect on investors or SP. People invested in this game are there for the long term and take the good with the bad in this industry.
If the company now forecasts a group EBITDA of between $32.5m and $33.5m, than this actually would be an earnings upgrade ;
But anyway - it is a seasonal business and I assume that competitors are hit in a similar way, though I am a bit surprised about the reduced harvest: We had (on our mid Canterbury "orchard") this year a bumper harvest ... but obviously - not everybody has as great climatic conditions as we have (and no, we neither grow Kiwifruit nor Avocado);
Guru analysts probably hadn’t included the $5.6m IFRS16 adjustment
”When investors are euphoric, they are incapable of recognising euphoria itself “
Not sure I would see this as a one off, it could be the new normal. Climate change, global deforestation and loss of diversity will ensure many more hot and dry summers with less natural pollinators in the years ahead.
A new cultivar could eventually be needed.
Last edited by Jaa; 10-05-2019 at 05:35 PM.
Reason: Updated to include plausible reasons for the dry summer
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