Sharechat Logo

Seeka Kiwifruit profit rises 47% on weaker currency

Wednesday 19th November 2008

Text too small?
Seeka Kiwifruit Industries, New Zealand's largest supplier of the fruit, posted a 47% gain in first-half profit as it benefited from a lower New Zealand dollar and improved harvesting techniques.

Net income rose to $8.4 million, or 67 cents a share, in the six months ended September 30, from $5.7 million, or 46 cents, a year earlier, the company said in a statement. Sales rose 1.2% to $95.2 million.

The kiwifruit company makes the bulk of its earnings in its first half, reflecting the seasonality of the harvest. Today it raised its full-year pretax profit forecast to between $4.8 million and $5.4 million and predicted demand for kiwifruit would be "stable," even as global economic growth slumps.

"The company has benefited from the dramatic decline in the value of the New Zealand dollar," chief executive Michael Franks said. "Provided there is no significant market collapse then the positive outlook for kiwifruit remains."

Seeka and its related entities handle about 26% of New Zealand's kiwifruit crop, which is mainly exported by Zespri International, the main exporting body. Orchard gate returns jumped, helped by lower rates of fruit loss during harvest and "an exchange-rate-driven improved Zespri return," the company said.

Zespri handles about 30% of the world's kiwifruit export trade.

The New Zealand dollar fell 15% against the US dollar in Seeka's first half. It has tumbled from more than 81 cents in March to trade recently at 55 cents.

Seeka will pay a first-half dividend of 12 cents a share.

By Jonathan Underhill

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

Seeka first-half profit plunges 92 percent on Psa impact
Seeka board tells shareholders not to vote for director
Seeka sinks into the red on orchard, goodwill write-downs
Seeka, having failed in merger, omits dividend, focuses on debt
UPDATE: Seeka flags lower profit on Psa but will comply with bank covenants
Seeka flags lower profit on Psa but will comply with bank covenants
Seeka appoints new Director
Italian kiwifruit orchard write-off won't impact Seeka earnings
Seeka 1st-half profit edges lower after Vital Foods write-down; outlook brighter
Seeka writes off investment in Vital Foods, shares jump 13%