Seeka predicts increased annual profit in 2016   21 Oct 2016

Friday 21 October 2016 03:44 PM

Seeka predicts increased annual profit in 2016, reduces fruit loss

By Sophie Boot

Oct. 21 (BusinessDesk) - Seeka Kiwifruit Industries, the largest kiwifruit grower in New Zealand and Australia, is forecasting up to an 86 percent lift in annual net profit in 2016, and is changing its name to just Seeka.

The Te Puke-based company is predicting net profit of between $7 million and $8 million for the year ending Dec. 31, from $4.3 million in 2015. In August, it reported first-half profit rose to $7.1 million in the six months ended June 30, from $3.7 million a year earlier, while revenue climbed 39 percent to $134.2 million.

Fruit loss has reduced this year, with just 1.3 percent of its Hayward variety lost as of Oct. 17, compared to 6.5 percent in 2015, the company said. Its Hayward Organic loss reduced to 0.9 percent from 4.6 percent, while its loss on the SunGold variety fell to 0.3 percent from 1.8 percent.

The company invested $16.4 million in New Zealand additional fruit processing and storage facilities in 2015, and a further $24.8 million in the first half of this year, with $13.4 million spent on New Zealand cool stores and packing infrastructure, it said. In 2017, it has plans for new cool stores, pre-coolers and other equipment.

Seeka listed in 2003. In recent years it has added SeekaFresh, which handles non-Zespri supplied produce including avocados, and Glassfields, which imports and ripens tropical fruit and provides a logistics service for retailers. It produces avocado oil that is sold under the Village Press brand.

Its shares last traded at $4.55 and have gained 32 percent this year.

(BusinessDesk)

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