Seeka sales hit by dollar, fruit quality

The high dollar and lower-than-expected Japanese sales helped drag Seeka Kiwifruit Industries' annual operating earnings $1.7 million below a prospectus forecast.

NZX-listed Seeka, New Zealand's largest kiwifruit supply company, yesterday reported provisional underlying operating earnings of $3.1 million compared with a forecast of $4.8 million last year.

Managing director Tony de Farias said a higher-than-expected dollar was the primary reason for the undershoot in the year to March 31.

But he also said lower-than-expected sales in the high-value Japanese market also contributed. Sales in Japan dropped slightly after several years of growth, with quality and taste issues - as well as competing fruits - cited as factors in the dip. However, sales were looking more positive this year with a lower dollar and signs the crop would be of better quality.

Total operating earnings were just under $5.3 million after the sale of land and buildings for $2.13 million.

Net profit was, therefore, up 39 per cent to $4.23 million.

Trading revenue grew 67 per cent to $94.8 million.

.Seeka moved from the NZAX to the NZX in July. Its price was unchanged at $4 yesterday.