• Orchard in good health, annual maintenance program well advanced
• Fruit set good in areas affected by last season's frost, but lower in Picual variety
• Water prices continue to rise, management needs to acquire more water

The company is pleased to present its report for the quarter ended 31 December 2025. The orchard is in good health, with the climatic conditions during late spring and early summer being dry and cooler than usual, allowing orchard operations to be completed as scheduled. The annual maintenance programme is well advanced and has been expanded to include an upgrade to the hydraulic control system on the two harvesters the company owns. Flowering at the orchard peaked in mid-November, which is later than normal. Orchard management reports that the fruit set is very good in those areas that were affected by last season's frost event. However, fruit set in the Picual variety is at the low end of expectations, particularly for trees on the hill that produced above-average yields last year. Consequently, the management team's expectations for the 2026 harvest are in the region of 570,000 to 640,000 litres, consistent with 2026 being an 'off' year in the biennial cycle of the orchard. Water prices have continued to increase during the quarter, with the spot price at the end of December slightly above $400 per ML, compared with $110 at the same time last season and a 2025/6 budget price of $200 per ML. Lake Eildon, the principal source of the orchard's irrigation water, is currently 50.86% full compared with 79.01% for the same time last year. Management needs to acquire another 600 to 800 ML of water to ensure the orchard receives a full irrigation this season. During the quarter, the company acquired the remaining irrigation assets from the first of the three projects it manages for $784,000, funded from surplus operating cashflows.