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Matthew Jones

BY MATTHEW JONES

@mattfruitnet

Thursday 19th August 2021, 08:31 Hong Kong

H1 revenue up at Seeka

Listed New Zealand company increases full year earnings guidance after strong opening half

H1 revenue up at Seeka

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Seeka has generated NZ$224m (US$154m) in revenue over the six months to 30 June 2021 (H1 2021), according to unaudited interim results released by the listed New Zealand company.

The performance betters the NZ$179m Seeka posted in the previous corresponding period (pcp) – 12 months to 30 June 2020.

Seeka’s net profit before tax (NPBT) lifted to NZ$30.8m in H1 2021, up 77 per cent on the pcp.

A dividend of NZ$0.13 per share has been declared, which will be paid on 13 October to registered shareholders.

Seeka made a substantial investment in its kiwifruit business over H1 2021, acquiring Ōpōtiki Packing and Cool Storage (OPAC) in May.

“OPAC is an eight-million-tray kiwifruit operation that expands our service delivery to the Ōpōtiki, East Cape and Gisborne regions,” said Seeka chief executive Michael Franks. “OPAC is now integrated, synergy savings on target, and the business is set to make a full-year financial contribution in 2022.

"Our New Zealand kiwifruit business is in a strong growth phase, and Seeka is investing NZ$20m in capacity builds for harvest 2022, including a new automated packline and high-efficiency coolstores near Te Puke. These new facilities will improve labour use while providing us with post harvest capacity through to 2024.”

The group has improved it operational earnings guidance for the full 2021 calendar year, based on the strong H1 performance.

Full year NPBT is now forecast to be between NZ$13.5m and NZ$16m. This includes NZ$1.4m of restructuring and acquisition costs. It excludes any one-off gains or extraordinary items (should they settle in 2021) and NZ$1.8m of OPAC profit to the acquisition date (NPBT).

Further to the full year operational guidance on NPBT, Seeka expects a one-off extraordinary gain from the successful settlement of the much publicised Kiwifruit Claim. The actual amount to be received by Seeka is unknown, with the distribution subject to High Court approval. The timing of payment expected to be received before the end of 2021.

Seeka is estimating that its share of the distribution could lift the NPBT for the 2021 year to between NZ$20m and NZ$22m.

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