Camellia H1 2025: modest revenue growth, seasonal loss, and a sharper focus on value
Camellia has posted a seasonal first-half loss but with a clear plan to tighten the portfolio and grow profitability. Revenue edged up to £107.7 million, while the trading loss held broadly flat at £9.6 million. Management is leaning into its Value Enhancement Plan – selling non-core assets, backing higher-return crops, and moving to a single annual dividend.
Remember, Camellia’s revenues are weighted to the second half because most crops are harvested and sold later in the year. The Board expects higher full-year revenue and an improved trading performance in 2025 versus 2024, but crop yields and prices remain uncertain at this stage.
Key numbers investors should know
| Metric (HY25 unless stated) | Figure |
|---|---|
| Revenue | £107.7 million (HY24: £105.1 million) |
| Trading loss (underlying operating result) | £9.6 million loss (HY24: £9.7 million loss) |
| EBITDA (earnings before interest, tax, depreciation and amortisation) | £6.2 million loss (HY24: £1.9 million loss) |
| Loss before tax | £10.4 million loss (HY24: £11.0 million loss) |
| Loss attributable to shareholders | £11.8 million loss (HY24: £13.6 million loss) |
| Cash and liquid assets at 30 June 2025 | £81.7 million (31 Dec 2024: £21.3 million) |
| Net assets | £312.4 million (HY24: £357.2 million; 31 Dec 2024: £347.7 million) |
| Disposals proceeds | £11.2 million from a tea estate, properties and collections in H1 |
| Shareholder distributions in 2025 | £18.9 million (Tender Offer, buyback, and 260p final dividend) |
| FX impact | £3.4 million exchange loss on US$ treasury deposits |
Value Enhancement Plan: what’s changing and why it matters
The Value Enhancement Plan (VEP) announced in May is the main event. In plain English: simplify the group, raise cash from non-core assets, invest in the winners, and reduce risk. That means more capital for avocados, macadamias and arable where returns look attractive, and fewer high-risk or lower-return assets.
We saw the first steps in H1: two Indian tea estates sold (one post period end), five properties offloaded, and further sales from the collections. Proceeds helped lift cash to £81.7 million and funded a meaningful return to shareholders, including a 260p final dividend (£6.6 million). Management is also moving to one dividend a year – sensible given harvest seasonality makes interim payouts hard to judge.
Regional performance: tea softer, nuts and arable improving
India – weather hit volumes, mixed pricing, portfolio tidying
- Tea output down 7% due to dry, hot weather; weighted average pricing slightly lower.
- Packet tea volumes fell 13% but pricing rose 13% as the focus shifts to higher-margin lines.
- One Dooars tea garden sold in H1 for £1.6 million; another completed in July at £2.2 million.
- Trials in garlic, turmeric, ginger and livestock underway, plus more mechanical plucking and tea tourism investment.
Bangladesh – poor yields but pricing support
- Production down 26% after a very dry winter and start to the season, though rains in Q2 helped.
- Carry-over stock of 4.7 million kg from 2024 fully sold, boosting sales mix.
- Minimum tea price set at 245 Taka/kg – up 53% year on year. Average pricing to date up 31%, but revenues still below cost due to weak yields.
Eastern Produce Kenya – volumes and prices under pressure
- Production down 23% on H1 2024 as drier weather returned; market remains oversupplied.
- Prices slipped 1% and Kenyan tea stocks continue to build. Efficiency actions ongoing, including solar at Chemomi.
Kakuzi (Kenya) – avocado pricing mixed, macadamias stronger
- Early Pinkerton avocado prices up 60% on last year; Hass down 36% due to Peruvian oversupply, but expected to improve as their season tails off.
- Successful trial shipments via the Red Sea could reduce logistics costs and improve arrival quality.
- Macadamia volumes up 41% and pricing up 53% – a clear bright spot.
Malawi – tea soft, macadamias and new fertiliser stream help
- Tea pricing down 5% on export market oversupply.
- Macadamia production up 61% and pricing up 33%.
- A 40% minimum wage increase from 1 June is a material cost headwind. New fertiliser supply business has helped trading and cash flow.
Tanzania – building an avocado growth engine
- Another 92Ha planted, taking avocado orchards to 448Ha of a planned 650Ha. Main dam construction progressing.
- First cropping season expected to start at the end of Q3.
South Africa – frost-hit crop but much better pricing
- Macadamia production down 29% due to frost during flowering in 2024, but market prices up 77% year on year.
- Cost base reduced via management restructure and regional office closure.
Brazil – stronger harvests and irrigation investment
- Soya production up 27% with improved conditions; five new pivots covering 200Ha installed and dam renovations ongoing.
- New 200Ha potato partnership launched; 233Ha repurposed from forestry to arable – 722Ha since 2020.
Other businesses
- Jing revenue up 13%, loss narrowed to £0.5 million.
- AJT revenue up 22% with £1.4 million profit; plans a new horizontal borer investment.
- Active sale process continues for the South African vineyard.
2025 production and price ranges: where guidance points
Management has outlined indicative ranges, not hard guidance, given weather and market sensitivity:
- India tea – full-year production 25.5-27.0 million kg; average price 210-240 INR/kg (vs 264 in 2024). That’s a cautious price range.
- Bangladesh tea – production 13.75-14.5 million kg; price 190-220 BDT/kg (above 2024’s 176), helped by the minimum price.
- EP Kenya tea – production 14.1-14.7 million kg (down on 2024); price 1.76-1.84 USD/kg – still tight.
- Malawi tea – production 17.1-19.1 million kg; price 1.10-1.20 USD/kg – subdued.
- Macadamias – Malawi 528 tonnes with pricing 11.00-11.30 USD/kg; South Africa 440-460 tonnes at 11.50-12.00 USD/kg. This is the standout recovery area.
- Brazil – soya 17,621 tonnes at c.2,124 BRL/tonne; maize 16,946 tonnes with a 1,000-1,300 BRL/tonne price range.
- Kakuzi – no forward guidance as it is a listed entity.
Balance sheet, FX and capital returns
Cash and liquid assets of £81.7 million give Camellia flexibility to invest and to keep pruning the portfolio. Net assets are £312.4 million, lower year on year due to shareholder distributions, losses in the period and translation impacts on overseas subsidiaries.
The company booked a £3.4 million exchange loss on US dollar treasury deposits as the dollar weakened. Management still prefers to hold US dollars given investment opportunities are largely USD-linked – logical, if a little bumpy quarter to quarter.
My take: cautious optimism with clear levers for improvement
Positives: cash is strong, asset sales are happening, nuts and arable look healthier, and the VEP gives a sensible framework to lift returns and reduce risk. The shift to a single annual dividend is prudent. If macadamia pricing holds and Brazilian volumes land as indicated, second-half momentum should build.
Negatives: tea remains tough – Kenya oversupply, Indian weather, and Bangladesh’s yield drag. Malawi’s 40% minimum wage rise is a sizeable margin headwind. FX can swing results, as shown by the US dollar loss.
Overall, the strategy is moving the right way, but execution through H2 – harvests, pricing, and further disposals – will be the proof. For investors, watch three things: Kenyan tea pricing and volumes, macadamia price strength into the peak selling period, and the pace of portfolio disposals versus reinvestment.
