Seeka kiwifruit harvest beats expectations, raising prospect of better earnings

Seeka Kiwifruit Industries [NZX: SEK], the country's biggest kiwifruit grower, reported a better-than-expected harvest in the 2015 season, which it says may help lift earnings in the current financial year.

The Te Puke-based company handled more than 26.3 million class 1 export trays in the 2015 season, up from 20 million trays a year earlier, and ahead of the 24.9 million trays forecast in April, it said in a statement. Green kiwifruit volumes advanced to 21.8 million trays from 18.1 million in 2014, while gold trays rose to 4.3 million from 1.7 million.

Chief executive Michael Franks said the increased volumes were "likely to be positive to earnings in the current year" while warning fruit marketer Zespri International forecast lower tray returns due to the bigger crop.

Seeka reported a profit of $3.2 million in calendar 2014 on revenue of $115.7 million, though hasn't provided guidance for the current year.

The company said it would forecast earnings in an October update to shareholders.

Seeka shares were unchanged at $3, and have dropped 7.1% this year.

(BusinessDesk)

Paul McBeth
Thu, 18 Jun 2015

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