The operating profit for New Zealand's biggest kiwifruit supplier, Seeka Kiwifruit Industries, for the year to March 31, climbed 35% against 2009 to $7.5 million.Net profit was eroded to sit at $1.4 million because of non-recurring items including one-off
The operating profit for New Zealand’s biggest kiwifruit supplier, Seeka Kiwifruit Industries, for the year to March 31, climbed 35% against 2009 to $7.5 million.
Net profit was eroded to sit at $1.4 million because of non-recurring items including one-off costs of $3.9 million associated with the acquisition of a Mt Maunganui packing facility and coolstore Te Awanui Huka Pak and a $1.8 million write-down in non-strategic assets.
The writedown was a result of its cornerstone stake in Opotiki Packing and Coolstorage (OPAC).
OPAC owned an 84ha orchard in Italy, which earlier this year lost its crop due to an outbreak of a bacterial disease.
In April, OPAC’s board determined the full cost of its $7.16 million investment in Italy should be written off.
As a result, Seeka announced it would add its share of the loss in its own financial results.
The purchase of Te Awanui led to Seeka growing to represent about 25% of the New Zealand kiwifruit industry.
During the financial year the company invested $8.4 million on a new gold kiwifruit grader, new coolstores and packing automation.
Chief executive Michael Franks said the company had come through challenges in 2009 in good shape and its investments positioned it well.
“Looking forward to the 2010 season, Seeka has increased post harvest volumes, increased long term lease gold production and is obtaining the benefits of post harvest innovation. Current year gold fruit loss is expected to be 1.3% on the five million trays handled,” Mr Franks said.
