Seeka announces $10.4m profit

Seeka chief executive Michael Franks was pleased with the companies record profit. Photo/File

Seeka has announced an audited net profit after tax of $10.4 million for the 12 months to 31 December, 2016, up 143 per cent on the previous corresponding period.

The Te Puke-based company reported that turnover increased 24 per cent to $229.4 million, while total revenues were $191.3 million, up 35 per cent on the previous year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $24.76 million, reflecting improving economies of scale.

Excluding the effect of the insurance settlement of $3.63 million relating to Oakside fire-related losses, EBITDA was $21.14 million, up 52 per cent on the revious corresponding period.

"In addition to Seeka producing a record profit and delivering operational improvements, [we] delivered excellent fruit-handling results for our growers based off excellent harvest timing and capacity planning," said chief executive Michael Franks.

Seeka handled a company record 32.44 million trays of kiwifruit, up 17 per cent on the previous year. It also reported an excellent year for its kiwifruit handling, particularly for SunGold at just 0.35 per cent.

Seeka also delivered industry-leading avocado returns of $26.86 per tray from its targeted export programmes, the company said.

In the first full season for its new Australian operations, Seeka processed 660,000 trays of kiwifruit, along with 1523 tonnes of nashi pears and 1790 tonnes of European pears.

"The new Australian business is now fully integrated into Seeka's business systems although a separate stand-alone business operated from Australia." said Mr Franks.

"As a result, Seeka now has year-round Seeka branded produce in the Australian market and has set a platform for growth there."

Chairman Fred Hutchings said the company had continued to invest in infrastructure to maximise efficiencies and meet expected future demand. Seeka invested $43.06 million in its New Zealand kiwifruit business and in orcharding, packing and fruit storage in Australia.

That included major infrastructure and capacity build with coolstore and precooler expansion at two of Seeka's main sites at Main Rd, Katikati and KKP in Maketu, as well as the construction of additional coolstores and a new kiwifruit packing machine in Australia.

The directors declared a dividend of $0.10 per share, which will bring fully imputed dividends in relation to financial year 2016 to $0.20 per share, compared to $0.19 per share in financial year 2015.

"We will continue to look for opportunities to innovate, expand or diversify to secure long-term growth and sustainable profitability as we pursue our vision to be New Zealand's premier produce business," said Mr Hutchings."

Seeka - 12 Month Financial Highlights 2016

* Total revenues: $191.3 million total revenues (up 35%)
* NPAT: $10.4 million (up 143%)
* EBITDA: $21.14 million (excluding the effect of insurance settlement - up 52%)
* Net asset backing per share: $4.88 (up from $4.34)
* Total assets: $197.31million (up 20%)
* Long-term borrowings: $68.73 million (up 31%)
* Increase in share price for 2016: $1.15