Interim Results
22 August 2003 - 8:39PM
UK Regulatory
RNS Number:9612O
United Plantations Africa Ld
22 August 2003
FOR IMMEDIATE RELEASE 22 August 2003
UNITED PLANTATIONS AFRICA LIMITED
UNAUDITED INTERIM REPORT FOR THE HALF YEAR ENDED 30th JUNE 2003
The Board of Directors presents its report based on the unaudited figures for
the half year ended 30th June 2003.
RESULTS
As advised in previous years, because of the seasonal nature of the Group's main
activity of citrus farming, expenditure is incurred throughout the year, whilst
the greater part of the income is received in the second half of the year.
Accordingly, the results set out below (which include estimated revenue figures)
are not indicative of the likely annual performance.
PRODUCTION
Production figures for the half year, together with comparative figures for the
same period last year, and for the whole of 2002, are:
6 months to Year to
30th June 31st December
2003 2002 2002
EXPORT CARTONS ('000):
Oranges (15 kg cartons) 96 134 672
Grapefruit (15kg cartons) 417 397 408
Limes (5 kg cartons) 31 29 29
---------- ---------- -----------
544 560 1,109
---------- ---------- -----------
LOCAL SALES (Tonnes)
Citrus 10,255 7,241 14,153
Limes 40 41 474
Bananas 1,802 1,339 3,393
Sugar (Sucrose) 1,503 1,915 5,144
---------- ---------- -----------
At Tambuti picking of oranges started only in July 2003, leading to fewer
cartons being reported as against the end of June 2002. Citrus production at
both Ngonini and Tambuti Estates is expected to meet budgeted volume for the
year.
Although control programs applied on the estates have limited the incidences of
Black Spot, the Company is continuing to lobby for a less stringent control of
this citrus blemish factor.
Lime production is higher this year but export volumes to the Middle East have
fallen. Local fruit sales are stable and fruit has been diverted from the local
fresh fruit market to lime juice production to make up for lost juice supplies
from Zimbabwe.
Sugar yields are slightly lower in 2003 and cutting of sugar cane started two
weeks later than in 2002. The development of a further 45ha of sugar cane has
been completed and harvesting will take place at the start of the next season.
The budgeted sucrose yield for the year has been reduced marginally from 5205
tons to 5102 tons.
Banana volumes are forecast to exceed budget for the year in good local market
conditions. 20 ha of Bananas under flood irrigation have been removed, and
yields remain high for bananas cultivated under drip irrigation. Good prices
being obtained at present are expected to continue due to problems being
experienced by South African producers.
Unaudited revenue and expenditure for the six months ended 30th June 2003
The unaudited revenue and expenditure for the six months to 30th June 2003,
together with figures for the same period in 2002 and the summarized figures
extracted from the audited results for the year ended 31st December 2002, are
set out below:
(All figures expressed in R 000's)
6 months to Year to
30th June 31st December
2003 2002 2002
Group Company Group Company Group Company
Revenue 30,490 322 26,880 325 57,819 526
Expenditure 30,137 1,268 26,625 1,279 57,267 2,085
------- -------- -------- -------- -------- --------
------- -------- -------- -------- -------- --------
Net Profit 353 (946) 255 (954) 552 (1,559)
before taxation
------- -------- -------- -------- -------- --------
Revenue and expenditure for the six-month period to 30th June 2003 is based upon
the actual costs incurred to date and 15kg equivalent carton sales for the
period at estimated selling prices and on confirmed sales prices where sales
have been completed. Expenditure includes financing costs.
Due to the inherent volatility of the fresh fruit markets and the fact that
revenues are confirmed towards the end of the season, the revenue figures at the
half year are generally not an accurate indication of the performance for the
half year. The proportion of sales to date in the European market has been on a
par with previous years.
PROSPECTS
The grapefruit season to date has been exceptional in Europe, with Florida fruit
clearing the market early due to quality problems. The quality of the company's
fruit has been excellent on arrival and at the start of the season is achieving
above average prices. White grapefruit has also performed relatively well to
date in Europe, achieving a premium over Japanese prices for the first time
ever. Although the market for white grapefruit is slowing down most of the
company's fruit volumes have already been sold. Prices in Japan were lower at
the start of the season by between 5%-10%. The lower prices can be ascribed to
overall depression in the Japan market, aggravated by an anticipated oversupply
from South African exporters. Prices have increased somewhat since the start of
the season and are expected to stabilize once better volume estimates become
available.
The start of the orange season has been poor, and the delay of South African
navels has led to a clash with the early Valencia types on the market. Orange
prices are under pressure in all markets. The remainder of the season is
expected to become more stable in Europe
New citrus development and replantings are being established under the Open
Hydroponics System which is expected to improve fruit quality and size by
strictly programmed control of water and nutrients to trees. The technology is
capital intensive and is being brought in only when replanting takes place.
Lime exports have been poor in the Middle East, the company's traditional
market, due to low priced supplies from Egypt and China into this market. Demand
for lime juice remains strong, however, and summer sales are expected to exceed
budget.
The sucrose price per ton is lower than budgeted for the year due to the
strengthening of the South African Rand.
Banana prices are good as South African suppliers reduce production. Banana
revenue is expected to exceed budget especially if prices remain stable.
Revenue for the year will be negatively affected by the reduced Lime exports and
by lower sucrose yields and prices, offset to some extent by better than
budgeted banana sales. The South African Rand has strengthened considerably
against the Euro during the last year placing additional pressure on export
revenues.
On the basis of citrus sales and agents marketing reports to date, and presuming
estimated sales values are achieved by the remaining sales, the Company expects
to return a small profit in 2003.
DIVIDENDS
The policy of considering the declaration of only a final dividend each year
will continue.
DELISTING FROM LONDON STOCK EXCHANGE
The Company currently is listed on both the London and Copenhagen stock
exchanges, and will be applying for a delisting from the London Stock Exchange
effective from 1st October 2003, while continuing with the Copenhagen Stock
Exchange listing.
EXCHANGE RATES
The Rand (ZAR) exchange rates as at 30th June 2003 were ZAR 12.3227 per Pound
Sterling, ZAR 8.5421 per Euro, and Danish Kroner 0.8698 per ZAR.
By Order of the Board
J Hebbert
Secretary
22nd August 2003
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEMFSESDSEDA