Camellia guides to near break-even for 2025 as crop pricing lifts and strategy bites
Camellia PLC says trading for the year to 31 December 2025 will be approximately break-even, a marked improvement on the £5.5 million trading loss reported for 2024. The uplift is driven by better prices and yields across parts of the portfolio, plus early benefits from last year’s Value Enhancement Plan (VEP).
Performance was stronger in Bangladesh, Brazil and Malawi, partly offset by weaker year-on-year results at EP Kenya and in India. Final audited results are due at the beginning of May 2026, alongside a fuller operational and strategy update.
Where the turnaround came from
The mix is important here. Camellia is a diversified agricultural group, so shifts in weather, pricing and volumes across regions matter. In 2025 the price environment did more of the heavy lifting than volumes in several areas.
- Bangladesh tea: Lower production, but a meaningful improvement in average selling price helped results.
- Malawi macadamias: Standout improvement with both volumes and average prices higher.
- Brazil crops: Bigger soya and maize harvests, with maize prices also up. Soya pricing was broadly flat.
- EP Kenya tea: Weaker on both production and price, which dragged group performance.
- India tea: Production was stable, with a modest price uptick.
2025 crop scorecard vs 2024
Selected production volumes and average selling prices disclosed by Camellia:
| Segment | Metric | 2025 | 2024 | Notes |
|---|---|---|---|---|
| India | Own tea production (million kg) | 27.8 | 27.9 | Stable volumes |
| India | Avg. tea price (INR/kg) | 268 | 264 | Modest price rise |
| Bangladesh | Own tea production (million kg) | 13.5 | 15.2 | Lower volumes |
| Bangladesh | Avg. tea price (BDT/kg) | 222 | 176 | Material price improvement |
| EP Kenya | Own tea production (million kg) | 12.2 | 16.5 | Volume decline |
| EP Kenya | Avg. tea price (USD/kg) | 1.78 | 1.84 | Softer pricing |
| EP Malawi | Own tea production (million kg) | 19.9 | 20.2 | Slightly lower volumes |
| EP Malawi | Avg. tea price (USD/kg) | 1.13 | 1.18 | Slight price dip |
| EP Malawi | Macadamia production (tonnes) | 528 | 267 | Volumes higher |
| EP Malawi | Avg. macadamia price (USD/kg) | 11.5 | 7.02 | Price recovery |
| EPSA | Macadamia production (tonnes) | 411 | 416 | Stable volumes |
| EPSA | Avg. macadamia price (USD/kg) | 10.92 | 7.94 | Price higher |
| Brazil | Soya production (tonnes) | 17,630 | 13,700 | Harvest up |
| Brazil | Avg. soya price (BRL/tonne) | 2,127 | 2,138 | Broadly flat |
| Brazil | Maize production (tonnes) | 16,946 | 11,733 | Harvest up |
| Brazil | Avg. maize price (BRL/tonne) | 1,102 | 1,020 | Price higher |
| Kakuzi (H1 only) | Avocado production (k cartons) | 901 | 1,118 | Lower H1 volumes |
| Kakuzi (H1 only) | Avg. avocado price (€/carton) | 4.29 | 5.17 | Lower H1 pricing |
| Kakuzi (H1 only) | Macadamia production (tonnes) | 413 | 293 | Higher H1 volumes |
| Kakuzi (H1 only) | Avg. macadamia price (USD/kg) | 11.56 | 7.54 | Higher H1 pricing |
Note: Kakuzi is separately listed and has not yet published full-year results; the figures above are half-year only.
Value Enhancement Plan: early traction and what it means
Camellia says the improved trading performance includes “early-stage contributions” from its Value Enhancement Plan. The VEP aims to support better operating results, increase growth investment and reduce the group’s overall risk profile. Tactically, that means pushing operating companies to realise more of their potential while disposing of higher risk, less predictable assets.
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.
