[8 March/National Business Review]

Tegel Group Holdings’ have downgraded their expected full-year results and unexpected costs have been incurred. It announced its annual results, even before one-off costs of between $8-$10 million, will be lower than last year after previously expecting to improve on last year’s results. Net profit is expected to be around $25-$27 million. Every result Tegel has reported since listing in May 2016 has fallen short of expectations. Tegel were blaming lower than expected export earnings. Tegel’s Chief Executive, Phil Hand, said that one off costs from ex-cyclone Gita, compliance and agriculture costs, and internal restructuring affected the bottom line. The company noted that although there will be a short term impact, there will be ongoing benefit from the improved structure. Mr Hand added that the domestic business was solid, and the new product development programme continued to deliver and the value-added sales were generating better margins.