LONDON (Alliance News) - Agriculture firm Camellia PLC on Friday reported better-than-expected profit for the first half of 2018, with the firm increasing its payout by 8.1%.
Pretax profit from continuing operations for the six months to June was GBP6.1 million, much higher than the GBP1.9 million it recorded in the same period a year earlier.
Revenue was up at GBP127.6 million versus GBP123.6 million.
Camellia is to pay an interim dividend of 40 pence per share, up from 37p a year before.
This result, Camellia said, is better than expected and is due to improved weather conditions as well as positive markets in most of its areas.
Tea production rose to 39.2 million kilogrammes from 36.7 million kilos, while macademia production has improved after two years of drought. Camellia expects the 2018 macademia crop to be 45% higher year-on-year.
In Kenya, Camellia's avocado volumes and prices have been higher year-on-year, but moving into the main cropping season in the second half prices are expected to fall due to large shipments coming from Peru.
In Specialty crops, it was a "mixed" interim period, with good production being offset by issues out of the company's control, it said.
Looking ahead, Camellia said given the fact that the second half of the year is always the busiest, it is difficult to give full year guidance at this stage, but the company is optimistic following what it called an "encouraging" first half performance.
Chairman Malcolm Perkins commented: "Profits for our continuing operations for the first half of the year were better than anticipated reflecting the generally benign weather conditions and favourable markets experienced across our agricultural operations.
"We have also made significant progress with our strategic initiatives to refine our portfolio. We remain financially strong, with the resources to advance our development plans."
Shares were untraded on Friday morning, last quoted at 10,800 pence each.
Camellia (CAM)