Latest news with #T&GGlobal
NZ Herald
2 days ago
- Business
- NZ Herald
Up for sale: The unusual way NZX-listed T&G Global found out its major shareholder was selling up
'Their disclosures have gotten better over the last three or four years, and that's commendable, but it is certainly not the most engaging of companies listed on the NZX from a shareholders' perspective. 'If I were an independent director, I would be asking a few questions as to why it did not come up earlier.' Like many in the horticulture sector, T&G Global took a hit from Cyclone Gabrielle. In its latest result, T&G Global said high demand for T&G Global's premium Envy and Jazz-branded apples, coupled with higher pricing in global markets, helped it bounce back from the impact of the cyclone. For the year ending December 2024, the company recorded a loss before tax of $6.8 million, compared with a pre-tax loss of $64.2m in 2023, and an operating profit of $12.7m (the previous year's loss was $45.6m). In response to an open letter to shareholders circulating on social media platform X that was critical of the company's performance, T&G Global chairman Benedikt Mangold said the board was confident in the company's strategy 'and we continue to be pleased with our financial progress'. 'We are fully aligned with management on the company's outlook, and we look forward to updating the market and shareholders on August 8 with our half-year results,' he said in an email to the Herald. Mangold said if shareholders had any concerns, they had not been raised at the company's annual meeting in May. Strategic options T&G Global, which sells fresh produce to more than 60 countries, is itself going through a process to consider its strategic options and has engaged Craigs Investment Partners to advise it. Late in 2021, the company announced it would spend $100m on a new state-of-the-art packhouse adjacent to its Whakatu site in Hawke's Bay. As well as improving productivity, the new facility would allow T&G to accommodate increasing volumes of Envy and other apple varieties. AFR's Street Talk said Australian fund manager ROC Partners 'likes the look' of T&G Global. The paper also said T&G Global would be a logical bolt-on for Macquarie Asset Management. In BayWa's annual report, new chief executive Frank Hiller said the company was embarking on a 'fundamental transformation' bringing an end to its debt-financed expansion. BayWa, which has interests ranging from food to construction and energy, first made its play for the then Turners and Growers in 2011, with the intention of a complete takeover. A pre-bid agreement with shareholder Guinness Peat Group meant it already had 63.5% of the shares locked up. The offer was for all shares in NZX-listed Turners & Growers at $1.85 a share, valuing the company at $216.5m. But rather than go to 100%, BayWa was persuaded to remain a majority owner, allowing minority shareholders to stay on the register and for Turners and Growers to retain its NZX listing. Meanwhile, speculation over T&G Global's future has not done its share price any harm. The stock now trades at around $2.05 – its highest point since October 2023. Port of Tauranga upgrade Brokers Forsyth Barr say the favourable pricing backdrop for Port of Tauranga (POT) continues, with the company set to materially increase its access pricing at MetroPort from September 1. 'Its vehicle booking system charge will rise by more than 100%, which we estimate will contribute incremental annualised revenue of $9m, assuming no volume offset,' the broker said. 'Pricing remains POT's key lever in lifting its return on invested capital above its 7% target by 2028, particularly given: (1) container terminal capacity constraints; and (2) the pricing behaviour of key competitor, Port of Auckland.' Forsyth Barr has raised its net profit forecast for 2026 by 3% to $146m and has left its 2027 forecast unchanged at $168m. Encouraging Ryman Forsyth Barr has welcomed Ryman Healthcare's (RYM) latest first-quarter sales update. Encouragingly, forward-looking contracted sales continued to recover, it said. 'One swallow does not make a summer, but we view this as an important step in de-risking the investment case,' the broker said. 'The key risk since RYM's pricing strategy change and dramatic drop-off in sales has been that it would build resales inventory at a high rate, forcing RYM to buy back units – creating a meaningful cash flow drag. 'Current resales levels remain insufficient to halt inventory build, but this update is a clear step in the right direction and should materially reduce the rate of inventory build.' Powering down Jarden has released its analysis of Meridian and Mercury's operating stats for June. It said Meridian's figures imply 2025 earnings before interest, tax, depreciation and amortisation (ebitda) of $612m, down from $905m in 2024. Mercury's update implies 2025 ebitda of $768m, down from $877m reported in 2024. 'We retain our $7.40 target price for Mercury and reaffirm our overweight rating, reflecting discounted valuation.' Listing the potential risks for Mercury, Jarden cited regulatory changes, transmission pricing methodology adjustments, wholesale spot price fluctuations and higher-than-historical inflows into its hydro generation from Lake Taupō down the Waikato River chain. The firm maintains a neutral rating on Meridian, with an unchanged target price of $6.47. Among the risks, Jarden again listed regulatory changes for Meridian. Annual results from Mercury are due on August 19 and August 27 for Meridian. Meanwhile, the High Court this week approved a scheme of arrangement under which Meridian will acquire all of the shares in NZ Windfarms. Provided the remaining customary conditions are satisfied or waived, implementation of the scheme will occur on July 30, Meridian said. Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.
Yahoo
4 days ago
- Business
- Yahoo
T&G Global mulls options with main investor eyeing sale
New Zealand-based fresh-produce company T&G Global has said it is up for sale with its major shareholder looking to offload its stake. German conglomerate BayWa owns around 73% of the company, which cultivates and supplies fruit and vegetables distributed locally and internationally. T&G Global is listed on the New Zealand stock exchange and, on Friday (11 July), the company issued two announcements to the market. The first filing said the group had 'received a large number of expressions of interest in its business' after BayWa's announcement in December it was reducing its investments as part of wider corporate changes at the German group. BayWa, which does business in sectors including building materials and renewable energy, ended 2024 with a loss of around €1.6bn ($1.86bn). 'At this time, T&G Global is not aware whether BayWa has made a decision about its shareholding in T&G Global,' the filing read. 'T&G Global is itself going through a process to consider its strategic options. This includes sharing initial business information to determine if, at a potential stage in the future, it is appropriate to explore any form of sales process for any of its divisions.' The group said it had hired Craigs Investment Partners and would 'update the market accordingly'. Under seven hours later, T&G Global did make another update. 'T&G Global has now had the opportunity to review BayWa's consolidated financial report 2024 received overnight. It is noted in that report that BayWa is endeavouring to refocus on its traditional core business and that T&G Global group, as well as other businesses, are up for sale as part of a long-term reorganisation,' the company said. BayWa, which said in December it was weighing up selling its stake in T&G Global, confirmed in the report, published last Wednesday, it was looking for a buyer. 'For overall strategic reasons, the BayWa group is endeavouring to refocus on its traditional core business.' Proceeds will be used to pay down debt. Citing unnamed sources, The Australian Financial Review has reported that ROC Partners, an investor in Australia's agriculture sector, is interested in T&G Global. ROC Partners has investments in Wagyu beef, eggs, and almonds through Stone Axe Pastoral Company, Pace Farm and Lachlan River Almonds. T&G Global operates in 13 countries and distributes fresh produce in more than 55 markets. The company supplies citrus, berries, tomatoes, and packs various vegetables for its partners. Its brands include Lotatoes, Beekist tomatoes, and Orchard Rd. In 2024, the group reported a revenue of NZ$1.36bn ($809.5m), a 2.2% increase from 2023. The company's full-year loss before tax narrowed to NZ$6.8m, compared to a NZ$64.2m loss in 2023. It reported an operating profit of NZ$12.7m, as against a loss of NZ$45.6m in 2023. "T&G Global mulls options with main investor eyeing sale" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
5 days ago
- Business
- Yahoo
T&G Global (NZSE:TGG) shareholders have endured a 31% loss from investing in the stock three years ago
T&G Global Limited (NZSE:TGG) shareholders should be happy to see the share price up 17% in the last quarter. But that cannot eclipse the less-than-impressive returns over the last three years. After all, the share price is down 31% in the last three years, significantly under-performing the market. It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. T&G Global isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings. In the last three years, T&G Global saw its revenue grow by 0.5% per year, compound. Given it's losing money in pursuit of growth, we are not really impressed with that. Indeed, the stock dropped 9% over the last three years. If revenue growth accelerates, we might see the share price bounce. But the real upside for shareholders will be if the company can start generating profits. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. It's good to see that T&G Global has rewarded shareholders with a total shareholder return of 14% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 5% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand T&G Global better, we need to consider many other factors. For instance, we've identified 1 warning sign for T&G Global that you should be aware of. T&G Global is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on New Zealander exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
NZ Herald
10-07-2025
- Business
- NZ Herald
T&G Global confirms expressions of interest for potential sale
NZX-listed fruit and vegetable exporter T&G Global has confirmed that it has received several expressions of interest about a potential sale. The Australian Financial Review (AFR) speculated that Australia's ROC Partners, which has widespread agricultural interests across the Tasman, had already expressed an interest in a potential breakup of TG
