LONDON (Alliance News) - Asian Citrus Holdings Ltd on Friday issued an update for the forthcoming winter orange crop from its Hepu and Xinfeng plantations, and said it expects production output to fall at both, which will hit revenue and profit in its current financial year.
Shares in Asian Citrus fell 16% to 5.70 pence Friday following the announcement.
"As a result of the reduction in the production volumes at both plantations and the anticipated lower selling prices of winter orange crop from Xinfeng Plantation, the board estimates there will be a reduction in revenue and profit generated from the group's agricultural produce segment for the financial year ending June 30, 2016 compared to last year's actual figures," Asian Citrus Holdings said.
Xinfeng, which earlier this year suffered "very significant damage" from the impact of Huanglongbing disease, also known as citrus greening disease, will have an estimated production output of about 11,000 tonnes for the second half of 2015.
That compares with 103,847 tonnes in the same period last year.
"The board wishes to reiterate that the impact of Huanglongbing disease in Xinfeng Plantation is significant with regard to the 2015 winter orange harvest and will have ongoing adverse effect on the results of the group for the financial year ending June 30, 2016," the company said.
Actual average selling prices of winter orange crop will be about 23.6% lower at Xinfeng Plantation compared to the prior year, the company expects.
The winter orange crop from Hepu, which has been hurt by poor weather, will, based on recently signed agreements, supply about 4,700 tonnes winter oranges in the second half of 2015.
That compares with the actual production output of 7,146 tonnes in the same period last year.
Based on current information, the anticipated average selling price of the winter orange crop from Hepu Plantation will show an increase of approximately 3% compared to the prior year, the company said.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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