Tonkens Agrar today released its H1 FY18/19 preliminary figures. In the period, the company’s sales increased from €8.2m to €9.1m, in line with the company’s guidance. However, overall performance fell to €9.0m (H1 FY17/18: €11.2m) and after tax profit stood at €0.7m (€2.6m).
The decline in overall performance was partly attributable to a reduction of potatoes and onions inventories from the high levels seen in FY17 associated with an exceptionally good harvest last year, according to the company. This year’s harvest delivered below-average yields as a result of a drought. In addition, in the period the company has not generated any significant other operating income, contrary to the previous year’s exceptional profit on the sale and leaseback of land.
Based on the preliminary results, Tonkens’ Management has adjusted its FY18/19 forecast. The company still expects an improvement in sales and now guides to a slight increase in overall costs as it might need to purchase potatoes and onions for its production purposes. Consequently, Tonkens anticipates its result will remain stable rather than improve.