Seeka sees profit gains continuing

Seeka Kiwifruit Industries more than doubled first-half profit after a record harvest, and the company sees annual earnings rising as much as 40 per cent.

Seeka Kiwifruit Industries's profit gains reflected record kiwifruit volumes, the company said.

Seeka Kiwifruit Industries, the country's biggest kiwifruit grower, more than doubled first-half profit after a record harvest, and the company sees annual earnings rising as much as 40 per cent.

Net profit rose to $3.7 million in the six months ended June 30, from $1.5 million a year earlier, the Te Puke-based company said. Earnings before interest, tax, depreciation and amortisation jumped 115 per cent to $11.4 million, on a 32 per cent gain in revenue to $104.7 million.

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."

Earlier this month Seeka announced plans to buy Australia's Bunbartha Fruit Packers for A$22 million ($24.5 million), making it the biggest kiwifruit grower on both sides of the Tasman, and adding an estimated $17 million in annual revenue and earnings in a range of $3.2 million to $4 million.

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 per cent and 40 per cent higher than the $3.2 million it posted in 2014.

The board declared an interim dividend of 9c per share, up from 7c a year earlier. Seeka's shares closed up 30c yesterday at $3.75.