Seeka’s first-half profit more than doubles
Country's biggest kiwifruit grower makes hay thanks to record harvest.
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Seeka Kiwifruit Industries [NZX: SEK], the country's biggest kiwifruit grower, more than doubled first-half profit as it benefited from a record harvest, and the company predicts annual earnings rising as much as 40%.
Net profit rose to $3.7 million, or 24 cents per share, in the six months ended June 30, from $1.5 million, or 10 cents, a year earlier, the Te Puke-based company said in a statement. Earnings before interest, tax, depreciation and amortisation jumped 115% to $11.4 million, on a 32% gain in revenue to $104.7 million.
The profit increase reflected "record kiwifruit volumes handled by post-harvest along with good earnings achieved by the orchard division," the company said. "While margins have remained tight, the greater volumes of fruit delivered the benefits of scale to both shareholders and growers."
Earlier this month Seeka announced plans to buy Australia's Bunbartha Fruit Packers for $A22 million, making it the biggest kiwifruit grower on both sides of the Tasman and adding an estimated $17 million in annual revenue and earnings in a range of $3.2 million to $4 million.
Seeka said it expects the stronger first-half result will extend into the second half, and gave guidance for annual net profit to be between 30% and 40% higher than the $3.2 million it posted in 2014.
The board declared an interim dividend of 9 cents per share, payable on September 18 with a September 11 record date. That's up from seven cents a year earlier.
The shares were unchanged at $3.45, and have gained 6.8% this year.
The first-half result includes a $2.17 million impairment charge on the buildings destroyed by a fire at Seeka's Oakside site earlier this year, offset by $2.31 million in insurance proceeds relating to the claim.
Seeka's orchard unit lifted revenue 22% to $32.9 million for a 51% increase in Ebitda to $4.5 million, while the post-harvest operations increased sales 32% to $59.8 million and more than doubled earnings to $11 million.
The retail division, which is made up of domestic sales and exports, excluding kiwifruit sold through Zespri International, lifted sales 69% to $12 million, while Ebitda sank 37% to $526,000. The drop in earnings was put down to lower volumes and prices for avocados.
(BusinessDesk)
Paul McBeth
Wed, 19 Aug 2015
Wed, 19 Aug 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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Seeka’s first-half profit more than doubles
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