Seeka returns to profitability after horror 2023
Kiwifruit and fresh produce handler Seeka will be bouncing back strongly from a big financial loss in 2023.
The move was announced this morning as the co-operative aims to expand its packing capacity, including processing and packing efficiency.
The notes come with a minimum interest rate of 8.5% per annum, paid quarterly in arrears. The interest rate is set annually and will be set at the higher of the minimum rate or the five-years government bond plus 4.5%. The initial interest is 8.9% per annum.
EastPack chief executive Hamish Simson says kiwifruit volumes are set to grow significantly over the next five years, pointing to Zespri’s five-year outlook which forecasts in increase in total New Zealand Class 1 supply from 178 million trays to 238 million trays in 2026.
“To accommodate this growth in international demand, EastPack will continue to expand its packing capacity to process the additional kiwifruit from our growers,” he says. “Most of this growth is already planted and on its way.”
Meanwhile, EastPack chairman John Loughlin says the company has a strong track record of investment, innovation and delivery.
“We have experienced sound financial performance since we were founded in 1980, supported by a grower-owned cooperative structure with predictable and reliable supply,” he says.
Loughlin claims the cooperative’s business model generates strong cashflow, meaning it has been comfortable funding most of its growth via bank debt.
“This issue provides the opportunity to diversify our funding sources further, adding resilience to our balance sheet.”
Loughlin points out that shares in EastPack can only be owned by growers, but the Notes issue provides all New Zealanders with the opportunity to invest in the cooperative.
The offer is open from today and closes at 5pm on 12 December 2022 with notes expected to be issued on 16 December.
