Beyond tea

Camellia is best known for tea, but its operating companies also grow avocados, macadamia nuts, rubber, wine grapes, blueberries and arable crops across seven countries, on about 48,000 hectares of mature land. (LSE:CAM) In 2026 the nut and fruit side of the portfolio has become the main source of pressure. The company's trading update on 22 October said results were being hit by a downturn in global avocado and macadamia prices and lower yields of both crops, alongside higher energy, fuel, fertiliser and transport costs.

There was no new Camellia announcement on 3 November 2026. (LSE:CAM) This article looks at where that exposure sits, using the 22 October update, the half-year results of 3 September and a notice relating to its Kenyan Subsidiary published on 26 August.

Kakuzi: the largest single drag

Kakuzi, a Nairobi-listed avocado and macadamia grower in which Camellia holds 50.7%, issued a profit warning in August saying its net Earnings for 2026 may be at least 25% lower than in 2025. (LSE:CAM) It cited exceptionally dry conditions at the end of 2025, the Middle East conflict and a softer international macadamia market.

In Camellia's half-year results, Kakuzi swung to a trading loss of £0.1m from a profit of £2.5m, with Revenue down to £5.6m from £8.3m, reflecting the timing of Hass avocado sales and weaker macadamia prices. (LSE:CAM) Camellia also said Red Sea transit restrictions had lengthened avocado shipping times and affected product quality on arrival in northern Europe. The October update named Kakuzi as one of the businesses whose weaker results more than offset gains elsewhere. Because Kakuzi is separately listed, Camellia says it cannot give unpublished guidance for it. Kakuzi is also extending a newly commercialised blueberry operation to 22 hectares by the end of 2026, one of Camellia's four growth projects.

Macadamia pricing elsewhere

The weakness is not confined to Kenya. In South Africa, macadamia output rose to 155 tonnes from 111 tonnes in the first half, but the average selling price fell to US$6.40 per kg from US$9.65. Malawi's macadamia production declined to 361 tonnes from 430 tonnes, and its trading profit fell to £2.9m from £5.0m. Both Malawi and South Africa were cited in October as weaker contributors.

The group picture

The board now forecasts 2026 revenue of £255m to £260m, against £268m in 2025, partly reflecting lower macadamia and avocado sales, and a trading loss of £3m to £5m. Disposal profits of about £23m are expected to lift EBITDA to £25m to £28m. Group Liquidity was about £144m at 30 September. Stronger tea results in Bangladesh, India and Eastern Produce Kenya have helped, but not enough to offset these headwinds. AJT is expected to report disappointing results because of weaker North Sea activity.

The shares closed at 5475p in the 3 November session, according to the LSE delayed price captured shortly after midnight on 4 November.

Why the company is still adding avocados

Despite the downturn, avocados remain central to Camellia's growth plans. Its Tanzania project aims to complete a 650-hectare irrigated avocado operation by the end of 2027, with 55 hectares planted in the first half of 2026. On our reading, this is a long-term bet that today's prices will not persist, since newly planted orchards take years to reach full production. The four growth projects together target about £35m of additional annual revenue by 2035, a management aspiration rather than a forecast.

Risks and next steps

Crop prices, weather, shipping disruption and input costs are outside management's control, and the board has said fourth-quarter phasing will influence the final result. It has also stressed that 2026 is no indicator of future performance. Full-year results will show how far avocado and macadamia prices dragged on the outturn; Kakuzi's own Nairobi disclosures may come sooner still.