LONDON (Alliance News) - Asian Citrus Holdings Ltd on Wednesday warned that its revenue for the full financial year will be lower and its net loss will be significantly wider than last year, after it suffered a challenging year that brought two typhoons and a disease among its orange trees.
The orange plantation operator and owner said that revenue in the second half of the year declined 22% on the second half of the prior year, and that the outcome for the full year will reflect a similar performance. Its core net loss is also expected to be more than double the loss of CNY193 million that was reported in the first six months of the year.
Asian Citrus suffered an incredibly tough year as its plantations were subjected to severe damage caused by two typhoons hitting southern China, as well as the Huanglongbing, or citrus greening disease, which destroyed many of its orange trees at its Xinfeng Plantation.
The average selling price of the group's winter and summer oranges crop declined 15% on the prior year as a result.
Asian Citrus added that the processed fruits business, which includes fruit juice concentrates, purees and frozen fruit and vegetables, also made a loss due to increased costs of raw materials owing to limited supplies, a rise in material scrap and maintenance costs, and higher labour costs.
Shares in Asian Citrus were trading down 9.1% at 8.75 pence Wednesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
