By NZPA
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Friday 7th February 2003 |
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It blamed a "corrrection" in sales coupled with the stronger New Zealand dollar for the expected lower profit.
The company, due to hold its annual shareholder meeting later today at its Gisborne headquarters, said it had decided not to pay a dividend for the 2002 year "and wishes to signal that it is unlikely to pay dividends over the next three years as it pursues growth opportunities".
Cedenco shares were unchanged at $1.90 shortly after the announcement.
Cedenco said that further drier capacity has been installed in its New Zealand powder operations increasing throughput and efficiency and reducing risk by shortening the season.
Low yields achieved from late season crops last year also led to the expansion of its quick freeze facility including the installation of a new freezer tunnel, blancher and other ancillary equipment.
That allows Cedenco to process other specialised crops alongside sweet corn or to process increased sweet corn volumes.
A new corn harvester was also purchased to handle the extra corn capacity.
It said there had been excellent planting conditions followed by a period of cooler temperatures which had delayed harvest and was producing crops with "mixed maturity".
After a number of seasons of strong sales growth, this year a pullback in sales to Japan was expected. That reflected Japan's weak economy and a tightening of customer inventory levels.
"This should return to normal in the 2004 season," Cedenco said.
In Australia there has also been significant capital spending -- on a new tomato unloading system, new steam supply and improvements to the waste water handling equipment.
It said the effects of the current drought were clearly visible in the agricultural landscape, and Cedenco had concerns about whether growers would supply the required volume of fruit to process.
Efforts to widen the sales base internationally away from the Australian domestic market, as well as shortfalls from European producers, had the business well positioned to increase sales this year, the company said.
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