Seeka in great shape for growth

Seeka Kiwifruit Industries - the largest post-harvest operator - is in good shape to deliver "very competitive" returns to growers, shareholders were told yesterday.
Speaking at the company's annual meeting, chief executive Michael Franks said Seeka improved operating profits in the last financial year despite a challenging season affected by hail and a world economic recession.
Looking at the present 2010 season, Mr Franks said Seeka had a rise in post-harvest volumes, and increased long-term lease gold production.
Seeka now processes 25 per cent of the country's kiwifruit crop, which is now more than 100 million trays a year.
Mr Franks said gold fruit loss this year was expected to be 1.3 per cent on more than five million trays handled, he said.
The company had expanded its Bay of Plenty operations and invested in innovative fruit-handling automation and new information systems which aided inventory management.
Seeka also entered into a venture to trial packing New Zealand-grown fruit in Shanghai in a move to reduce costs, said Mr Franks.
The $7.5 million operating profit in the year to March 31, 2010, was up 35 per cent on the previous year. Seeka's non-recurring items, however, lowered the net profit to $1.4 million and included one-off costs of $3.9m associated with the purchase of Te Awanui Huka Pak at Mount Maunganui and a $1.8 million write-down in non-strategic investments.
Mr Franks said Seeka's long term lease developments were now at full production and would exceed 1.2 million trays in the current year.
Zespri gold kiwifruit returns, already strong in 2009/10 at $7.60 per tray, were expected to improve again in 2010/11.
Normalised operating cash flow was $10.2 million, and the company paid dividends of 20 cents per share fully imputed to shareholders.
Seeka reported that the purchase of Te Awanui Huka Pak grew Seeka by a quarter to represent about a quarter of the New Zealand kiwifruit industry.
Huka Pak included a catchment of early maturing orchards that have improved Seeka's operating performance. The Huka Pak purchase included a team of experienced orcharding and post-harvest staff and premium orchards.
Seeka had invested $8.4 million in the present financial year. Investments had been targeted at a new gold grader situated at its Oakside facility, at new coolstores and packing automation.
Seeka has become one of the Bay's largest employers. With approximately 250 full-time employees, the company employs over 3000 seasonal workers through the kiwifruit harvest, packout and coolstore season.
"We've come through the challenges of 2009 in good shape, and our investments have positioned the company well," said Mr Franks.