Seeka benefits from record kiwifruit harvest

  • 19/08/2015
Seeka benefits from record kiwifruit harvest

Seeka Kiwifruit Industries, the country's biggest kiwifruit grower, has more than doubled first-half profit as it benefited from a record harvest.

Net profit rose to $3.7 million in the six months ended June 30, from $1.5M a year earlier, the Te Puke-based company said in a statement.

Earnings before interest, tax, depreciation and amortisation jumped 115 percent to $11.4M, on a 32 percent gain in revenue to $104.7M.

The profit increase reflected "record kiwifruit volumes handled by post-harvest along with good earnings achieved by the orchard division," the company said.

"While margins have remained tight, the greater volumes of fruit delivered the benefits of scale to both shareholders and growers."

Seeka said it expects the stronger first-half result will extend into the second half, and gave guidance for annual net profit to be between 30 percent and 40 percent higher than the $3.2M it posted in 2014.

The board declared an interim dividend of nine cents per share, up from 7c a year earlier.