Half yearly revenue falls 14.5 per cent at Asian Citrus after unstable weather

Revenue fell 14.5 per cent to RMB892.0m (94.4m pounds) in the six months ended December 31st at AIM-listed Asian Citrus.

Revenue fell 14.5 per cent to RMB892.0m (94.4m pounds) in the six months ended December 31st at AIM-listed Asian Citrus.

The company, which owns orange plantations in China, reported that total production was down 6.0% to 161,233 tonnes, primarily reflecting a planned replanting programme to increase yields.

Core net profits were down 22.7% to RMB249.5m reflecting higher direct production costs as a result of unstable weather conditions in 2012 and general wage inflation in the People's Republic of China (PRC).

The company also reported strong free cash flow of RMB144.9m and cash and cash equivalents of RMB2.4bn as of December 31st 2012.

The company declared an interim dividend of RMB0.03 and a special dividend of RMB0.02 per share.

Some 129,000 summer orange trees were planted during the current period and another 600,000 summer orange trees are scheduled to be planted before December 2013.

Tony Tong, the Chairman of Asian Citrus, commented: "Our performance during the six month period was disappointing, primarily due to the higher costs incurred as a result of unstable weather in 2012 and general wage inflation in the PRC.

"The group's second half performance will reflect the price achieved for the group's summer orange crop, the selling price of pineapple juice concentrates and the impact of weather on the volume of fertilisers and pesticides used by the group.

"In this respect we expect that orange prices will rise, albeit slightly, responding to the inflationary environment and the forecasts for China's economy, which the World Bank has predicted will expand by 8.4% in 2013 and we are also optimistic that juice prices will continue to increase throughout the balance of the year.

Asia Citrus' share price was down 5.51% to 30p at 10:53.

MF

Recommended

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
How to stop recurring subscriptions becoming a drain on your money
Personal finance

How to stop recurring subscriptions becoming a drain on your money

Tracking and pruning subscriptions isn’t as easy as it sounds. Here's how to take charge.
14 Sep 2021