Camellia (LSE:CAM) expects trading performance for 2025 to come in around break-even, marking a significant recovery from the £5.5 million trading loss reported in 2024, helped by improved pricing and production yields across Bangladesh, Brazil and Malawi alongside early progress from its Value Enhancement Plan.
Results were partially offset by weaker contributions from EP Kenya and India. Agricultural output trends were mixed overall, with tea and avocado volumes varying year on year, while macadamia production and prices rose sharply in Malawi as well as at EPSA and Kakuzi operations, providing a key boost to group performance.
The company has also strengthened leadership capability through the appointment of Simon Morgan as Director of Corporate Development. He will oversee the “Invest in Growth” pillar of the Value Enhancement Plan, drawing on his experience in agribusiness and emerging market investments. As part of efforts to streamline operations and reduce exposure to more volatile assets, Camellia’s Indian subsidiary, Goodricke Group, has signed a memorandum of understanding for the potential disposal of the Barnesbeg Tea Estate, highlighting continued portfolio optimisation ahead of full-year results scheduled for May.
Camellia’s outlook remains shaped by financial challenges, including a history of losses and negative cash flow generation. Technical indicators suggest ongoing bearish momentum, and although the company’s relatively high dividend yield may provide valuation support, a negative price-to-earnings ratio and weak underlying financial metrics continue to weigh on overall sentiment.
More about Camellia
Camellia Plc is an international agricultural holding company with subsidiaries managing approximately 50,000 hectares of established farmland across Bangladesh, Brazil, India, Kenya, Malawi, South Africa and Tanzania. The group’s revenues are primarily derived from large-scale cultivation of tea, avocados, macadamias, rubber, wine grapes, blueberries, arable crops, forestry and livestock, positioning the company as a long-term producer of sustainably grown agricultural commodities.
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