Camellia Plc (LSE:CAM) has told shareholders to expect a trading loss for 2026. In an update on 22 October 2026, the agriculture, engineering and food group said it expects Revenue of £255 million to £260 million for the year ending 31 December 2026, down from £268 million in 2025, and a trading loss of £3 million to £5 million, compared with a £1.0 million profit a year earlier.

What Camellia does

Camellia is a diversified group with interests in tea, avocados, macadamia nuts, arable farming and other businesses across Africa, Asia and South America, alongside engineering and food operations. It is listed on AIM and is a member of the FTSE AIM All Share Index. The group has been running a Value Enhancement Plan that involves selling Assets to release capital.

The October trading update

Management blamed higher global costs for energy, fuel, fertiliser and transport, together with lower avocado and macadamia prices and weaker crop yields. The tea businesses in Bangladesh, India and Kenya and the Brazilian arable Business were reported to be performing well. Camellia expects about £23 million of profit from asset disposals, estimated EBITDA of £25 million to £28 million, and Liquidity of about £144 million at 30 September 2026.

Half-year results

The half-year results, published on 3 September 2026, covered the six months to 30 June. The trading loss was £5.0 million, an improvement on a £9.6 million loss a year earlier, and revenue was £104.6 million against £107.7 million. EBITDA was a £19.3 million profit, compared with a £6.2 million loss, and profit before tax was £15.6 million versus a £10.4 million loss. Disposals during the period brought in £30.7 million of cash and £18.9 million of profit, and four growth projects were advancing. LSE:CAM cautioned that full-year trading profit faced headwinds from events in the Gulf and from the performance of its listed Subsidiary Kakuzi.

Disposals

The disposal programme has been busy. On 30 October 2026 Camellia said its 74% owned Indian subsidiary Goodricke had signed a memorandum of understanding on 29 October to sell the Barnesbeg Tea Estate for 50 million Indian rupees, subject to due diligence. Earlier in 2026 LSE:CAM announced the sale of the Chalouni Tea Estate, exchanged contracts for the sale of Linton Park, and sold items of artwork, most recently on 17 September.

Sector and index context

Agricultural producers are exposed to Commodity prices, weather and input costs, and Camellia's spread of crops and geographies is intended to smooth the effects. Even so, simultaneous falls in nut prices and yields can outweigh strength in tea. On AIM, LSE:CAM is one of a small number of long-established agricultural names.

Key risks

The updated outlook shows how sensitive Earnings are to costs and commodity prices. Reported profit depends heavily on disposal gains, which are one-off by nature, so underlying trading is the more important measure of progress. Sales such as Barnesbeg remain subject to due diligence, and conditions in the Gulf and at Kakuzi were flagged as sources of uncertainty at the half year.

What to watch next

Investors will watch for confirmation of the Barnesbeg sale, for further disposals under the Value Enhancement Plan, and for the preliminary results for 2026, which should follow the update and show how much of the planned disposal profit has been realised. A Kakuzi profits announcement was made on 26 August 2026, so further subsidiary updates could also influence sentiment. The pace of energy, fuel and fertiliser costs will matter for the 2027 outlook, as will avocado and macadamia nut prices and crop yields.