Seeka predicts increased annual profit in 2016, reduces fruit loss
Seeka is predicting net profit of between $7 million and $8 million for the year ending December 31, from $4.3 million in 2015
Seeka Kiwifruit Industries, the largest kiwifruit grower in New Zealand and Australia, is forecasting up to an 86% lift in annual net profit in 2016, and is changing its name to just Seeka.
The Te Puke-based company is predicting net profit of between $7 million and $8 million for the year ending December 31, from $4.3 million in 2015. In August, it reported first-half profit rose to $7.1 million in the six months ended June 30, from $3.7 million a year earlier, while revenue climbed 39% to $134.2 million.
Fruit loss has reduced this year, with just 1.3% of its Hayward variety lost as of October 17, compared to 6.5% in 2015, the company said. Its Hayward Organic loss reduced to 0.9% from 4.6%, while its loss on the SunGold variety fell to 0.3% from 1.8%.
The company invested $16.4 million in New Zealand additional fruit processing and storage facilities in 2015, and a further $24.8 million in the first half of this year, with $13.4 million spent on New Zealand cool stores and packing infrastructure, it said. In 2017, it has plans for new cool stores, pre-coolers and other equipment.
Seeka listed in 2003. In recent years it has added SeekaFresh, which handles non-Zespri supplied produce including avocados, and Glassfields, which imports and ripens tropical fruit and provides a logistics service for retailers. It produces avocado oil that is sold under the Village Press brand.
Its shares last traded at $4.55 and have gained 32% this year.
(BusinessDesk)
Sophie Boot
Fri, 21 Oct 2016
Fri, 21 Oct 2016
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Seeka predicts increased annual profit in 2016, reduces fruit loss
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