REG - Camellia PLC - Trading Update

CamelliaAnnouncement

08/03/2023 07:15

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RNS Number : 2183S  Camellia PLC  08 March 2023

8 March 2023

Camellia Plc

(the "Company" or the "Group")

 

Trading update

 

Further to the trading announcement on 7 December there has been a significant
improvement to our expectations for underlying profit before tax for the Group
for 2022.

 

Negotiations on pay in Bangladesh have now concluded resulting in a government
mandated payment of Tk11,000 per permanent worker (payable during 2023) and a
pay increase of 41.7% effective from the beginning of August 2022.  This is a
significantly improved outcome than anticipated and will be reflected in our
2022 results.

 

In addition, trading in our agriculture division in the final quarter of the
year has been ahead of our expectations due to:

·      Higher net sales prices achieved for India, Bangladesh and Kenya
teas

·      Better net sales prices for avocados

·      Improved net sales prices achieved for both soya and maize

·      Tighter control of production and overhead costs across the
division

·      Offset in part by lower net sales prices for macadamia and Malawi
teas

 

We also further reduced our head office overhead costs.

 

Revenue for continuing operations* for 2022 is now expected to be
approximately £294 million. As a consequence of the factors set out above,
excluding any financial results for BF&M for 2022, the Company now
believes that the adjusted profit before tax for continuing operations** for
the Group for 2022 will be approximately 10% below the reported adjusted
profit before tax for continuing operations (including BF&M share of
results for that year) for 2021 which was £8.8 million. This compares very
favourably to the Company's previous guidance given on 7 December 2022.

 

BF&M is expected to announce its results in April 2023 and until that
time, as a consequence of the impact of the volatility of equity and bond
markets on BF&M's results, it is not possible for Camellia to forecast the
likely full year outcome for BF&M with any certainty.

 

 

*   continuing operations are all operations except for ACS&T which was
sold at the end of 2022

** adjusted profit before tax for continuing operations seeks to present an
indication of performance for continuing operations which is not impacted by
exceptional items or items considered non-operational in nature and for
example it excludes impairment charges, gains/losses on disposal of assets and
restructuring costs.

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation.

 

Enquiries

 

Camellia Plc
 
01622 746655

Malcolm Perkins, Chairman

Susan Walker, Chief Financial Officer

 

Panmure Gordon
 
020 7886 2500

Nominated Adviser and Broker

Emma Earl

Rupert Dearden

 

Maitland/AMO

PR

William Clutterbuck
 
07785 292617

 

 

 

 

 

 

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