Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Seeka more than doubles 1H profit on Opac sale gains

Seeka more than doubles 1H profit on Opac sale gains; kiwifruit industry still challenging

By Suze Metherell

Aug. 22 (BusinessDesk) - Seeka Kiwifruit Industries, the fruit grower and coolstore and packhouse operator, more than doubled first-half profit as challenging trading conditions and rising costs were offset by gains from the sale of its cornerstone stake in Opotiki Packing and Cool Storage.

Profit rose to $1.48 million in the six months ended June 30, from $672,000 a year earlier, the Te Puke-based company said in a statement. Sales rose 18 percent to $79.2 million, while cost of sales increased 21 percent to $69.3 million. Earnings before interest, tax, depreciation and amortisation rose 29 percent to $5.8 million, and include $1.4 million from the sale of the Opac shares.

"The post-harvest environment remains competitive," Seeka said in a statement. "The margins are tight as post-harvest companies drop prices to attract custom. While capacity overall is expanding to handle greater volumes of fruit, a competitive environment is expected to continue."

Local kiwifruit growers have been struggling with the outbreak of Pseudomonas syringae PV actinidiae in 2010, which infected about 40 percent of the nation’s orchards, with gold fruit varieties hardest hit. The sale of its 20 percent stake in Opac for $3.1 million was part of Seeka’s post-Psa strategy, which has included selling off non-core assets, reducing debt, restructuring operations and limiting capital spending. As part of its restructure and diversification away from kiwifruit, Seeka bought Glassfields (NZ), the fruit ripening and import business, for $5.25 million in April.

In the six month period kiwifruit volumes packed rose to 20.2 million trays from 18.8 million a year earlier. Market share for Hayward, the green kiwifruit variety, grew to 15 percent, but the Zespri SunGold variety slipped to 11 percent, as the recovery in gold fruit variety is yet to reach commercial volumes, Seeka said. The fruit grower expects the gold market to double in 2015, once re-grafted SunGold orchards reach commercial volume.

Shares of the NZX-listed company were unchanged at a near-five year high $3.29, and have gained some 57 percent since the start of the year.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: Body massages and Uber are in, DVDs are out, says Stats NZ

Statistics New Zealand has rejigged the consumers price index basket in its latest three-year review, adding body massages, Airbnb and Uber and removing DVD and Blu-Ray players…More>>

ALSO:


StuffMe: Commerce Commission Welcomes Dismissal Of Merger Appeal

In a summary of their judgment released today, Justice Dobson and lay member Professor Martin Richardson dismissed the appellants’ process criticisms and found the Commission was entitled to place significant weight on the prospect of reduced quality of the products produced by the merged entity. More>>

ALSO:

Digital Futures: New Chief Technology Officer Role Created

Communications Minister Clare Curran has called for expressions of interest for the new role of Chief Technology Officer position to help drive a forward-looking digital agenda for New Zealand. More>>

Dry: Beef + Lamb Launches Drought Resources

The resources include a fact sheet outlining strategies to manage and mitigate the effects of drought, coping with stress on the farm and advice on feed requirements and animal welfare during the dry period. More>>

ALSO:

InternetNZ: Net Neutrality Failure In US "Will Hurt All Users"

InternetNZ Chief Executive Jordan Carter has condemned the decision by the United States communications regulator to undo 2015 open Internet rules, warning that all Internet users will end up worse off as a result. More>>

ALSO: