Camellia Nears Break-Even in 2025 Amid Strategic Shifts and Senior Team Strengthening

That risk-reduction angle matters in agriculture, where crop cycles, weather and global prices can whipsaw results. The real test will be whether these early wins can scale into sustained operating and cash performance – detail on that will have to wait for May. Cash flow and capital allocation specifics are not disclosed in this update.

Strategy moves: senior hire and a proposed estate sale

Director of Corporate Development appointment

Camellia has hired Simon Morgan to a new non-board role of Director of Corporate Development, focused on the “Invest in Growth” element of the VEP. His background spans corporate finance and agribusiness investing across emerging markets, including Africa, the Middle East and Southeast Asia.

This is a pragmatic addition: the plan calls for targeted growth investment and portfolio shaping, so in-house deal and structuring expertise should help execution.

Proposed sale of Barnesbeg Tea Estate

Goodricke Group Limited, Camellia’s 74% owned Indian subsidiary, has signed a memorandum of understanding regarding a proposed sale of the Barnesbeg Tea Estate. Terms, valuation and timing are not disclosed.

This aligns with the VEP’s intent to dispose of higher risk or less predictable assets. The eventual proceeds and profit or loss on disposal will be important markers of strategy progress.

Why this update matters for investors

• Headline improvement: Moving from a £5.5 million trading loss to around break-even is meaningful. It suggests pricing tailwinds and early VEP actions are gaining traction.
• Portfolio balance: Stronger Bangladesh, Brazil and Malawi outcomes countered weaker EP Kenya and India. Diversification helped – but the Kenyan and Indian softness shows sensitivity to local market conditions.
• Macadamia recovery: Significantly higher macadamia prices and improved volumes in Malawi (and higher prices at EPSA) are a bright spot, hinting at better margins in that category.
• Execution risk remains: The key swing factors – tea pricing, weather, currency and unit costs – are not in Camellia’s full control. VEP delivery and asset sales need to land well to hard-wire the recovery.
• Information gaps today: No guidance on cash flow, capex, net debt or dividends in this trading update. Dividend commentary is not disclosed.

What to watch into the May 2026 Final Results

• Segmental profitability: How much of the improvement came from price vs productivity, especially in Bangladesh tea and Malawi macadamias.
• Unit costs and margins: Any evidence that VEP actions are lowering costs or improving factory and field efficiency.
• Portfolio actions: Further disposals flagged under the VEP, plus the outcome and terms of the proposed Barnesbeg sale.
• Kakuzi’s full-year picture: Whether H1 avocado weakness persisted, and how the macadamia strength translated for the year.
• Capital allocation: Growth investments planned by the new Corporate Development function, and any shift in geographic or crop mix.
• Market outlook: Management’s view on tea, macadamia, avocado, soya and maize pricing heading into 2026.

My take: cautiously positive, with delivery to prove

This is a constructive update. Near break-even in 2025, helped by better crop pricing and a strong macadamia showing, is a step in the right direction. The VEP is doing what it says on the tin so far – sharpen focus, trim risk, and set up for growth – and the Barnesbeg move fits that narrative.

The flipside is that EP Kenya and India remind us how quickly tea can turn, and we still need the hard numbers on cash generation and returns. If May brings confirmation of margin improvement, sensible disposals and a clear investment pipeline, the case for a sustained turnaround strengthens. For now, the tone is improving – but the proof will be in the full results.