Camellia, an agriculture, engineering, and food-services company, has announced that it anticipates a decline in revenue and an increased pretax loss in 2023. This projection is mainly due to lower production and prices in certain markets.
Revenue and Pretax Loss Projections
The company expects to generate revenue for continuing operations that ranges between £283 million and £287 million ($344.1 million-$349 million). Additionally, it foresees an adjusted pretax loss ranging from £9 million to £11 million.
Production Expectations in Different Markets
Camellia has reported that production in Kenya and Bangladesh has exceeded expectations. However, the company has experienced lower production than expected in India and Malawi due to adverse weather conditions.
Materially Below Expectations: Prices in India and Malawi
The average prices achieved in India and Malawi have fallen significantly below expectations throughout the year. This trend is expected to persist, according to the company.
Recovery in Haas Avocado Crop Prices
Although prices for Camellia's Haas avocado crop have also been below expectations, there seems to be a positive recovery underway.
Significant Deterioration: Maize and Wheat Prices
On the other hand, prices for maize and wheat have experienced a significant decline in recent weeks, according to Camellia.