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Seeka reports 11 million net profit for June half year results
28 August 2017

Seeka Limited (NZX-SEK) has announced its unaudited financial results for the six months ended 30 June, 2017. Net profit after tax (NPAT) of $11.09m for the six months to June 30, 2017 was up 56% on the $7.12m reported in the previous corresponding period (PCP). The result reflected improvements from Seeka Australia’s earnings and the successful completion of the New Zealand avocado season.

Seeka’s revenue for period was $134.01m (2016: $134.24m). Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $21.93m (2016: $15.84m); up 38%. EBITDA from Seeka Australia totalled $3.41m (2016: $1.52m); up 124%.

“An excellent kiwifruit crop has delivered a stand out performance for our Australian business which earned $3.00m profit before interest and tax compared to $1.23m for the same period last year,” said CEO, Michael Franks. “Our price, quality and service have been well received in the market and combined with higher kiwifruit volumes has gained good results.”

Seeka handled nearly double the volume of fruit in the New Zealand avocado selling season with 487,095 export trays (2016:225,656 export trays) delivering $24.85 per tray to growers (2016: $26.86).

Cash invested in property and equipment totalled $13.22m, down on the previous corresponding period (2016:$24.84m). Major capital expenditure items included packing plant at Peninsula (Coromandel) and Main Road (Katikati), and the completion of coolstores at Main Road (Katikati) and Transcool (Te Puke).

“While carefully managing our costs, we’ve continued to invest in infrastructure in line with 2018 expected crop volumes,” said Franks. “In Australia Seeka are developing 40 hectares of new kiwifruit orchard in Shepparton, Victoria over the next five years.”  

Operational earnings for the full financial year in 2017 however, are still anticipated to be lower by up to 15% on the previous year. This reflects a significantly lower Hayward (green) kiwifruit crop across New Zealand. Seeka’s New Zealand kiwifruit volumes were 21% than the previous season.

Seeka Key