Asian Citrus Holding squeezed in orange output

22nd Jan 2013 14:16

Asian Citrus Holding shares were down three per cent after the orange plantation operator projected rotten half year results.The company expects to record a decrease in core net profit for the six months to December 31st, following a squeeze on winter orange production, according to a trading update Tuesday.The group was hit by a 26.9% decrease of output from its Hepu plantation in Guangxi, an autonomous region of southern China, during the period. Poor weather conditions and heavy rainfall in 2012 meant the company consumed a higher volume of fertilisers.Results were also impacted by high labour costs following general wage inflation in the People's Republic of China. The firm's tropical fruit juice business Beihai Perfuming Garden Juice Company, was slammed by lower average selling price of its pineapple juice concentrates as a result of the destocking by Thai and Philippine producers. Asian Citrus said it was "too early in the financial year" to judge its full-year performance but it 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.The group cultivates and sells Navel, Hamlin, Pineapple and Hong Jiang and Valencia oranges to supermarket chains, corporate customers, wholesalers and sole proprietors in China. RD