Seeka profit dives 44pc to $5.8m

Seeka posted a 44 per cent decline in annual profit as Australasia’s biggest kiwifruit grower booked a $2 million charge on its banana sourcing unit while seeing a decline in kiwifruit volumes.

Net profit fell to $5.8 million, or 34c a share in calendar 2017, from $10.4m, or 62c a year earlier, the Te Puke-based company said in a statement.

The year-earlier figure was bolstered by a $3.1m gain on an insurance payment. Revenue fell 2 per cent to $186.8m.

“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 per cent range of $7.8m, 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 5-10 per cent in 2018 from $23.1m in 2017.

The board declared a final dividend of 12c a share, payable on March 23. That takes the total return to 22c for 2017.

The shares fell 2.5 per cent to $5.80.