fbpx
Print this page
Tuesday, 28 January 2025 10:55

Seeka returns to profitability after horror 2023

Written by  Sudesh Kissun
Kiwifruit trader Seeka says lower costs and higher income in 2024 has boosted earnings. Kiwifruit trader Seeka says lower costs and higher income in 2024 has boosted earnings.

Kiwifruit and fresh produce handler Seeka will be bouncing back strongly from a big financial loss in 2023.

The listed company expects 2024 full year earnings to be between $27.5 million and $31.5 m. In 2023, Seeka posted a $21m loss and $6.5m profit in 2022.

In a release to the NZ Stock Exchange last week, Seeka chief executive Michael Franks says the increased earnings reflect a strong close-out to the year, through lower-than-expected overhead costs and higher than anticipated income in December.

"The market guidance is based on unaudited financial results and the audited financial statements are expected to be released late February," says Franks.

Seeka operates a fully integrated orchard-to-market service, delivering premium produce to retailers and wholesalers, both in New Zealand and overseas.

The company's New Zealand product lines include kiwifruit, kiwiberries and Hass avocadoes: in Australia it is the largest producer of Hayward kiwifruit and Nashi pears and produce a range of European pears and plums.

Like other NZ horticulture companies, Seeka endured a tough 2023 as a warm wet winter, cyclones and hail significantly impacted orchards.

Yields were down across the industry, with Seeka only handling 30 million trays of class 1 New Zealand kiwifruit in 2023, compared with 42 million in 2022.

While Seeka's operations performance between the orchard and point of sale was impressive, the large drop in kiwifruit volumes reduced Seeka's revenue for 2023 to $301 million, down from $348 million in 2022.

Seeka responded to the seasonal downturn by suspending dividends and reducing overheads. This included establishing a captive insurance structure to slow the impact of rising insurance costs. Having completed several post-harvest automation projects, Seeka also reduced its capital expenditure.

Last June, Seeka's bankers provided a new $201 million sustainability-linked loan facility that included covenant waivers that allow Seeka to focus on restoring profitability.

More like this

Kiwifruit sector's big night out

The turmoil and challenges faced by the kiwifruit industry in the past 30 years were put to one side but not forgotten at a glitzy night for 400 kiwifruit growers and guests in Mt Maunganui recently.

Featured

Farmer input needed to combat FE

Beef + Lamb New Zealand (B+LNZ) is calling on livestock farmers to take part in a survey measuring the financial impact of facial eczema (FE).

Editorial: Escaping Trump's wrath

OPINION: President Donald Trump's bizarre hard line approach to the world of what was once 'rules-based trade' has got New Zealand government officials, politicians and exporters on tenterhooks.

Wool pellets to boost gardens

With wool prices steadily declining and shearing costs on the rise, a Waikato couple began looking for a solution for wool from their 80ha farm.

National

Machinery & Products

Alpego eyes electric power harrow

Distributed by OriginAg in New Zealand, Italian manufacturer Alpego recently showed its three metre Alysium electric power harrow at the…

New seed drill tech coming

Incorporating Vaderstad's latest seed drill technology, the Proceed V 24, is said to improve precision and increase planting efficiencies for…