Seeka Announces Result for the Six Months to 30 June 2022

Thursday 18th August 2022

Listed New Zealand produce company Seeka, reports its unaudited interim results for the six months ended 30 June 2022.

- $49.4m EBITDA – up 5.3% on six months to June 2021, (previous corresponding period (pcp))

- $21.5m NPAT – up 4.3% on pcp

Seeka has announced its results with a backdrop of Covid-19, adverse weather events, extreme labour shortages, machine commissioning delays, shipping disruption, lower fruit yields and poor quality. It has been a tough six months and the company has hunkered down, toughed it out and focussed on the immediate job of optimising its operations and results in a volatile environment with significant inflationary pressure and geopolitical events affecting key markets.

The company has focussed on core business having completed the acquisition and integration of OPAC, Orangewood and NZ Fruits in the last twelve months.

While revenue was up by 10% to $247.3m, earnings were impacted by increased costs and lower than expected fruit volumes. Labour was extremely tight through key main harvest periods with Seeka having to innovate to maintain operations. Loyal personnel were redeployed to "play out of position" at peak stress load to ensure the continuity of operations.

Fruit volumes were lower than expected reflecting a late 2021 storm in the Ōpōtiki region along with a seasonal reduction in yields across all catchments. In addition, the Gisborne region was later than normal in maturing and then was hit with persistent rain events.

Fruit quality in 2022 is unseasonably poor and this has created industry-wide issues.

The new highly-automated MAF Roda packing machine was commissioned later than expected adding to capacity challenges. The new machine brings together the latest automation as previously trialled by the company. The KKP machine alongside other automation investments and Seeka’s operations in Gisborne and Oakside provide the capacity to handle the expected 2023 crop volumes.

In June Seeka delivered its first sustainability report including three years of verified carbon footprint calculations. Seeka is committed to reducing its carbon footprint by 30% by 2030, 50% by 2030 and to be net carbon neutral by 2050.

Seeka reminds the market that it operates a seasonal business in the primary industry where the bulk of activities occur in the first six months of the year.

Dividend

The Board has determined that no dividend is payable at this time with the dividend to be reconsidered later in the year.

Full year operational guidance

Seeka’s full year outlook is dynamic, with a challenging second six months forecast. Full year net profit before tax is forecast to be between $9.0m and $11.0m.

The full text of the announcement is attached along with the unaudited six month financial statements to 30 June 2022.

ENDS

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