Seeka improves earnings outlook, pays dividend early

Seeka's performance is looking up after a tough loss-making FY23.

Seeka, Australasia’s largest kiwifruit producer, says excellent fruit quality has helped lift its forecast full-year before-tax profit and declare an interim dividend of 10c per share.

The NZX-listed company said forecast full-year earnings guidance at a profit before tax level has increased from a previous range of $17-21 million to between $21m and $25m.

In FY23, Seeka reported a loss of $21m.

“The improved forecast reflects enactment of a clear strategy, excellent fruit quality and performance, efficiencies and margins across the business,” it said in a market statement ahead of its October update.

It also declared a dividend of 10c a share to be paid on January 20, ahead of the normal dividend payment month of April.

Chief executive Michael Franks said the Bay of Plenty-based company had achieved a good year.

“The guidance range indicates record operational earnings for Seeka, and key covenant ratios are well within their long-term range.

“While there is a drive to continue to reduce debt, the company considered a distribution to shareholders appropriate. The full-year dividend is normally paid in April. This year, the full-year dividend has been varied to provide a quicker restoration of dividends and provide an earlier return on investment to Seeka’s shareholders,” Franks said.

Seeka’s share price closed up 8.6% or 23c to $2.90 on Wednesday.