A robust first six month result has been delivered despite a challenging operating environment. The Company has managed to hold revenue at the same level as the previous comparable period and has grown its earnings before impairments despite lower processing volumes.
OVERVIEW OF THE FIRST HALF RESULTS
The six month period was challenging for Seeka with a severe hail storm during the harvest and world wide economic turmoil in key markets affecting green fruit returns from Zespri. This hail storm reduced fruit volumes, made fruit processing more difficult and devastated returns for affected orchards. Zespri returns for the gold variety strengthened, reflecting a lower New Zealand dollar and strong market pricing, particularly from Asia.
Despite the adverse events, Seeka was able to maintain revenues at $95.5 million and increase EBITDA by $1.2 million to $17.6 million. Net profit before tax, non-recurring items and impairments, for the six months ended September 2009 was up 21.3% at $14.6 million. Net profit after tax and non-recurring items was down $0.2 million (2.9%) at $8.2 million due to write-downs of $1.7 million associated with Seeka's investment in Vital Foods and a $400,000 reduction in the consideration from the sale of South Auckland Packing and Coolstore Limited.
Seeka has achieved an operating cash flow of $17.0 million, which is $2.0 million (13.5%) higher than for the previous comparable period. This cash flow enabled Seeka to reduce its bank borrowings by $6.7 million. As a result Seeka's equity ratio (shareholders equity to total assets) improved to 55% from 53%.
Click here to view a copy of the Half Yearly Report September 2009.
