Seeka CEO Michael Franks.
Seeka Kiwifruit Industries, Australasia's largest kiwifruit grower, recently announced unaudited results for the six months ended June 30, 2016.
Net profit after tax (NPAT) of $7.1 million for the six months to June 30, 2016 was up 92 per cent on the $3.7m reported in the previous corresponding period (PCP).
Seeka also announced an increased dividend of $0.10 per share, up from $0.09 per share in the PCP.
The result reflected the successful completion of the avocado selling season, the first year's business operations for Seeka Australia and record New Zealand kiwifruit volumes.
The half-year results include one-off gains from discontinuing long-term leases, which added $457,000 to the after tax result.
"Seeka handled record New Zealand kiwifruit volumes at 32m trays. While these higher volumes have led to better earnings, they also required significant investment," said chief executive Michael Franks.
"The company had invested $17.8m in New Zealand ahead of the volume increase and the infrastructure was in place to deliver growers a timely harvest. Early fruit performance was good, particularly in the SunGold variety."
Mr Franks outlined that the company was satisfied with the six month results and thanked staff, contractors suppliers and growers for their efforts.
Key highlights for the half year included:
• The first harvest and sales programmes for Seeka Australia,
• Significant infrastructure investment in the New Zealand core kiwifruit business,
• Successful completion of the 2015/16 avocado selling season which delivered record returns to growers, and
• Successfully managing and processing a record New Zealand kiwifruit crop.
Mr Franks said Australian operations had started profitably in their first season, with Seeka harvesting 580,000 tray equivalents of Australian kiwifruit, 1432 tonnes of Nashi pears, and 1791 tonnes of European pears.
Australian operations were profitable with earnings before interest, tax, depreciation and amortisation (EBITDa) of $1.52m, and delivered NPAT earnings of $660,000 for the half-year.
"Our Australian earnings reflect a challenging first growing season and we are learning about doing business in Australia and its environment," said Mr Franks.
"We are very positive about our Australian business and its potential and are continuing to invest in its development."
Chairman Fred Hutchings said Seeka had delivered a timely harvest to growers and facilities were fully utilised.
"Disciplined and professional planning ensured that Seeka had the capacity to handle its growers' fruit. Seeka had a clear vision and strategy. The company was striving to grow from its kiwifruit foundation and to deliver excellent performance to growers and returns to shareholders.
"While the company focused on its core business and the integration of the Australian business, the strategy remained in place.
"This strategy may see the company contemplate and action value accretive acquisitions or expand its geographical boundaries further. Seeka's vision remains to be New Zealand's premier produce business."
Seeka will provide guidance for the current trading year at its Stakeholder Update on October 21.
Seeka highlights for the six months to June 2016:
• $7.12m net profit after tax (up 92% on PCP)
• $151.26m total turnover (up 32% on PCP)
• $15.84m EBITDA (up 39% on PCP)
• $3.31m cash flow from operations (up $5.75 million on PCP)
• Earnings per share $0.45 ($0.25 in PCP)
• $24.84m of cash flow invested in property, plant and equipment (up $14.75m on PCP)