Week ended Sunday 28 February 2021
Welcome to our Week 8 Frankly Speaking update – this update brings our growers and stakeholders up to date with the latest events in and around Seeka.
Last week was big week with the Company finalising and releasing its Audited Financial results for the year ended 31 December 2020. There have been highlights right across the business. The record profit after tax of $15.2m was aided by some one-off gains with sales of orchards in Northland and Australia and by the effect of tax changes on deferred tax, as well as a number of one off impacts including the costs of responding to COVID and drought. We received no Government support for our wages through COVID and have managed to reduced our net debt over the year by 33% to $78m. Our earnings per share for the year was $0.52 and a dividend has been announced of $0.12 payable 30 March to all shareholders on the register on 5 March. In summary, our earnings are up, our debt is down, and we have caught up and maintained our dividend. Quite a remarkable series of results and reflects the hard work undertaken by those in and around the Company.
The kiwiberry harvest is nearly completed with one orchard remaining to be picked when it stops raining and the orchard has had a chance to dry out. The program has gone very smoothly,the team is satisfied so far and just anxious to complete. The avocado program is now into the shoulder pools with the export program completed. Shoulder pools sees the fruit being processed for the local market, when pricing is strong. While it has been a challenging season the returns for the main season look good noting the small size profile.
Planning for the kiwifruit harvest is well underway. There are many challenges around. It is hoped that the Zespri maturity testing system software will be functional by 4 March, compared to the original drop dead go-live date of 4 January. Our lab is up, fully resourced and ready to provide a professional and timely service. Samplers have already commented and complimented us on the standard of our maps.
We remain actively recruiting for seasonal employees. Some regions and sites are reporting good numbers, but noting that employees register across a number of Companies, the proof will be when we start. We normally need 130% signed up to get 100% staffing, and at a number of sites we are not at 100% yet.
Innovative advertising and marketing has helped, and we have combined with MSD and iwi groups to attract New Zealanders into work. The first of our new RSE’s are progressing through MIQ now.
A late change is, the re-instating of the COVID protocols put in place last year including; screens, distancing, temperature logging, gloves and masks across our orchards and packhouses companywide. Our facilities will be “safe-zones” for our workers and moving between sites will be discouraged. It’s all part of a protocol to ensure that our people are safe, that our produce has all markets status from a COVID perspective and that value of our fruit will be optimised. It all however comes at some cost.
Next week we have scheduled “After 5” updates where we will bring you up to date with the latest including our pricing for 2021. The Level 2 lockdown and Level 3 in Auckland may mean that we have to change our plans on where, when and how we do this. We will update you on Friday about our plans.
Kind regards and be safe
Michael
Seeka Key
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