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

 

Seeka annual profit falls 44% on lower kiwifruit volumes

Seeka annual profit falls 44% on lower kiwifruit volumes, impaired banana business

By Paul McBeth

Feb. 23 (BusinessDesk) - Seeka posted a 44 percent decline in annual profit as Australasia's biggest kiwifruit grower booked a $2 million charge on its banana sourcing unit while managing a decline in kiwifruit volumes.

Net profit fell to $5.8 million, or 34 cents per share in calendar 2017, from $10.4 million, or 62 cents a year earlier, the Te Puke-based company said in a statement. The year-earlier figure was bolstered by a $3.1 million gain on an insurance payment. Revenue fell 2 percent to $186.8 million.

"The steps taken by Seeka and outlined in this commentary led to a better profit from operations than forecast given the scale of reduction in New Zealand kiwifruit volume," chief executive Michael Franks and chief financial officer Stuart McKinstry said. "Seeka is anticipating a return to average Hayward (green) kiwifruit yields along with a steady increase in the Zespri SunGold volumes."

The fruit grower had predicted after-tax operating earnings to be within a plus or minus 5 percent range of $7.8 million, which it generated a year earlier, citing an improved performance across most of its divisions.

Seeka forecasts earnings before interest, tax, depreciation and amortisation to rise by 5-to-10 percent in calendar 2018 from $23.1 million in 2017.

The board declared a final dividend of 12 cents per share, payable on March 23 to investors on the register at the close of trading on March 16. That takes the total return to 22 cents for 2017, up from 20 cents a year earlier.

The shares fell 2.5 percent to $5.80.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: 'Wellbeing Of NZers At The Heart Of Budget Priorities'

“We want a wellbeing focus to drive the decisions we make about Government policies and Budget initiatives. This means looking beyond traditional measures - such as GDP - to a wider set of indicators of success,” Grant Robertson said. More>>

ALSO:

Short Of 2017 Record: Insurers Pay $226m Over Extreme Weather

Insurers have spent more than $226 million this year helping customers recover from extreme weather, according to data from the Insurance Council of NZ (ICNZ). More>>

Environment Commissioner: Transparent Overseer Needed To Regulate Water Quality

Overseer was originally developed as a farm management tool to calculate nutrient loss but is increasingly being used by councils in regulation... “Confidence in Overseer can only be improved by opening up its workings to greater scrutiny.” More>>

ALSO:

Deal Now Reached: Air NZ Workers Vote To Strike

Last week union members voted overwhelmingly in favour of industrial action in response to the company’s low offer and requests for cuts to sick leave and overtime. More>>

ALSO: