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Hawaii’s largest macadamia nut producer had favorable harvests and sales in the first quarter, but higher expenses including windstorm repairs hurt the bottom line of Royal Hawaiian Orchards LP.
The Hilo-based company had a $658,000 net loss in the first three months of the year, up from a $253,000 loss in the same period last year, according to a report filed Thursday with the Securities and Exchange Commission.
Royal Hawaiian had $3.5 million in revenue during both periods. Expenses, however, rose in the recent quarter and included $280,000 spent on repairing damage from a January windstorm.
Despite the storm, Royal Hawaiian had bigger harvests in the recent quarter because nut development last year was poor or delayed.
For instance, orchards in Kau produced 41 percent more nuts in the recent quarter compared with last year when there was poor flowering, dry weather and insect damage. Orchards in Keaau produced 266,000 pounds of nuts in the recent quarter compared with no nuts a year earlier because of late flowering last year.
The favorable harvests helped Royal Hawaiian increase revenue from its orchard operations that include farming macadamia nuts for other tree owners. Revenue for this business was $2.9 million in the recent quarter, up from $1.9 million a year earlier.
Offsetting higher orchard revenue was a drop in Royal Hawaiian’s branded snack business where revenue was $591,000 in the recent quarter compared with $1.6 million a year earlier.
The decrease in this business was due to Royal Hawaiian selling fewer processed nuts in bulk offset somewhat by more sales of its packaged macadamia nut snacks.