Australasian fresh produce company Seeka has posted a netprofitofNZ$18.4mforthe sixmonths to 30June2020.
The unauditedfigure is up54.9 per centonthe corresponding period of 2019, reflectingtheeffectofa NZ$5.6mtaxbenefit.
“Whiletheresult includesthe benefitfromthetaxation change arising fromreinstatementofthe taxdeductibility of depreciationonbuildingsand its effectondeferredtax,underlying earnings for Seekawereup,” according to a statement from Seeka.
“This wasinspite ofthesignificant costsandlosses arising fromCovid-19,theimpactofdroughtand thepressure createdbyaseverelabour shortage throughtheperiodsthatNewZealandhas beensubjectto AlertLevelrestrictions, particularlywiththeshortfallofoverseasworkers.”
Seeka’s totalrevenuefor the six months to 30 June 2020 came in atNZ$178.7m, up5.2 per cent year-on-year, while EBITDAwasNZ$30.4m, up9.1 per cent.
The company reported a totalnetdebtofNZ$129.3m, comparedtoNZ$148.1mat30 June2019.
Seeka estimatedcostsandlosses associatedwithCovid-19totalledNZ$5.3m over the first half of 2020.
Meanwhile, the summer drought experiencedinNewZealandhasimpactedonthe volume of kiwifruit Seeka processed in 2020,particularlyinlocationsororchardswhere irrigationisnotavailable.
Seekaisanticipatingloweroperational earnings forthesecondhalfof2020, reflectinglower volumesoffruitinstoreat 30June (2020) andanearly selling season.
The company hasconditionallysold and leasedbackthree AustraliankiwifruitorchardsforA$26.5m.Whencompleted, these sales are expectedtoreducedebt andrealiseagainonsale.