Sharechat Logo

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

Friday 23rd February 2018

Text too small?

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)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

ASB reviews ownership of Aegis
Auckland Airport kicks off next phase of expansion
Cashed-up Plexure eyes acquisitions to accelerate growth as loss shrinks
Tower turns to 1H profit, lifts FY guidance
IRD should have doubled claim against Watson's Cullen Group - Professor
Investore FY profit falls 16% on smaller valuation gain, signals flat dividend for 2020
Synlait receives cease and desist letter regarding Pokeno plant
21st May 2019 Morning Report
NZ dollar steady ahead of central bank speeches
Auditors need to come out of the shadows and explain the value they add: FMA

IRG See IRG research reports