Camellia
Plc
17th
October 2024
Trading
Update
Camellia Plc ("Camellia" or the Company")
announces an improvement to its forecast for the year to 31
December 2024 with trading now expected to be ahead of market
expectations. Adjusted losses for 2024 are now forecast in the
range of £7-9 million from a previous range of £10-12
million. This improvement is primarily the result
of an improved outlook for our Indian operations.
Tea
India: Projected
yields in North India are impacted by hot dry spells and heavy
rainfall, resulting in lower production predicted, but similar to
2023. Pricing has improved significantly.
Bangladesh: The
recent political volatility experienced in the country had little
impact on tea operations. Production has been similar to last year
and within our expectations. Pricing for 2024 production is
anticipated to be in line with 2023, but results have been hampered
by lower prices for our 2023 carry over inventory. Cost of
production is expected to be lower than in 2023. We expect
that inventory levels will be high going into
2025.
Kenya: Favourable
weather has helped production to be higher than last year. A
large volume of older tea is still in circulation in the market;
the reserve price mechanism has been removed creating greater
opportunity for the sale of these teas. Pricing, however,
remains under pressure due to impact of the high levels of
inventory in the market, and we expect this will persist for the
remainder of the year.
Malawi: Production
volumes are within our expectations and higher than
2023. But the market
situation in Kenya has also hit demand for Malawian tea, leading to
further softening of prices.
Avocados
Kenya: Avocado
pricing has been higher than last year's levels. Production,
however, was hit by wet weather during the second quarter. The need
to route cargoes away from the Red Sea has led to extended voyage
times and has impacted fruit quality.
Other
crops
Other crops are performing in line with the
guidance previously given.
ENQUIRIES
Camellia
Plc
01622 746655
Byron Coombs Chief Executive Officer
Oliver Capon, Chief Financial Officer
Panmure
Liberum
020 7886 2500
Nominated Adviser and Broker
Emma Earl
Rupert Dearden
H/Advisors
Maitland
PR
William
Clutterbuck
07785 292617
