REG - Camellia PLC - Trading Statement

CamelliaAnnouncement

17/10/2024 07:00

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RNS Number : 4881I  Camellia PLC  17 October 2024

Camellia Plc

17(th) October 2024

Trading Update

Camellia Plc ("Camellia" or the Company") announces an improvement to its
forecast for the year to 31 December 2024 with trading now expected to be
ahead of market expectations. Adjusted losses for 2024 are now forecast in the
range of £7-9 million from a previous range of £10-12 million.   This
improvement is primarily the result of an improved outlook for our Indian
operations.

Tea

India: Projected yields in North India are impacted by hot dry spells and
heavy rainfall, resulting in lower production predicted, but similar to 2023.
 Pricing has improved significantly.

Bangladesh: The recent political volatility experienced in the country had
little impact on tea operations. Production has been similar to last year and
within our expectations. Pricing for 2024 production is anticipated to be in
line with 2023, but results have been hampered by lower prices for our 2023
carry over inventory.  Cost of production is expected to be lower than in
2023.  We expect that inventory levels will be high going into 2025.

Kenya: Favourable weather has helped production to be higher than last year.
 A large volume of older tea is still in circulation in the market; the
reserve price mechanism has been removed creating greater opportunity for the
sale of these teas.  Pricing, however, remains under pressure due to impact
of the high levels of inventory in the market, and we expect this will persist
for the remainder of the year.

Malawi: Production volumes are within our expectations and higher than
2023.  But the market situation in Kenya has also hit demand for Malawian
tea, leading to further softening of prices.

Avocados

Kenya:  Avocado pricing has been higher than last year's levels. Production,
however, was hit by wet weather during the second quarter. The need to route
cargoes away from the Red Sea has led to extended voyage times and has
impacted fruit quality.

Other crops

Other crops are performing in line with the guidance previously given.

ENQUIRIES 

Camellia
Plc
01622 746655 

Byron Coombs Chief Executive Officer 

Oliver Capon, Chief Financial Officer 

Panmure Liberum
 
020 7886 2500 

Nominated Adviser and Broker 

Emma Earl 

Rupert Dearden 

H/Advisors Maitland 

PR 

William
Clutterbuck
07785 292617 

 

 

 

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