Seeka, the New Zealand kiwifruit supplier, has reported that year-on-year profit increased 47 per cent during the first half of the year, up to NZ$8.4m (US$4.6m) from NZ$5.7m (US$3.1m) in 2007.
The improved results were attributed to the 'dramatic decline' in the value of the New Zealand dollar, coupled with improved harvesting techniques that saw fruit loss lowered and returns increase, according to group CEO Michael Franks.
Operating cash flow for the period ended 30 September 2008 stood at NZ$15m (US$8.2m), up NZ$10.6m (US$5.8m) on the corresponding year-earlier period. Group debt dropped NZ$11.3m (US$6.2m) during the six months.
The results were achieved despite a marginal decline in the kiwifruit harvest, which fell from a record 21.2m trays in 2007 to 21.1m trays. Avocado volumes also fell from 330,000 trays to 150,000 trays.
'While worldwide economic uncertainty exists, with possible flow-on effects from any US recession, the kiwifruit market remains stable and should translate into increased orchard gate returns despite some softening of prices,' said Mr Franks. 'Provided there is no significant market collapse then the positive outlook for kiwifruit remains.'
The group has forecast full-year profit at NZ$4.8m-NZ$5.4m (US$2.6m-US$2.97m), up from the previous estimate of NZ$4.4m-NZ$5.2m (US$2.4m-US$2.86m), reflecting improved performance and better fruit returns.
Seeka had previously reported disappointing results in June for the full-year ended 31 March, withprofits more than halving to NZ$2.6m (US$1.4m) from NZ$5.5m (US$3m) in the previous year.
No comments yet