(Alliance News) - Camellia PLC on Tuesday lowered its profit expectations for 2022 due to lower than average crop volumes.
The Kent-based agriculture and engineering services firm said it now expects pretax profit to decline 65% to 70% compared to last year, as prolonged adverse weather conditions in India combined with a consequential increase in pest activity in a number of estates has resulted in "significantly" lower than average crop volumes.
With the production window heading towards its close, Camellia said this lost volume is not capable of being recovered.
However, revenue is expected to grow by 17% to 18% as Camellia said its cereal operation in Brazil has continued to perform well and is seeing continued improvements in market conditions for its products.
Meanwhile, Camellia's kernel production is expected to be 18% ahead of last year. However, Camellia said the kernel market continues to be adversely affected by the large inventory of smaller style products and, with China's re-opening delayed, it now expects lower prices for its products for the remainder of this year and into next.
Operations Bangladesh will record a loss for the full year due to the crop loss, Camellia said. Operations in this region have been "adversely" affected by weather conditions, although this has been partially offset by "better than expected" average prices.
Camellia shares were down 5.3% to 4,500.00 pence on Tuesday afternoon in London.
By Jaskeet Briah; jaskeetbriah@alliancenews.com
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Camellia (CAM)