Seeka posts half year profit dip

Seeka Kiwifruit Industries today reported a 12.5 per cent drop in earnings for the six months to September to $3.94 million, from $4.51 million for the same time the year earlier.

Revenue in the period grew to $78.526 million compared to the $43.162 million.

Earnings before interest and tax, were up 9.9 per cent at $7.775 million from $7.073 million.

The kiwifruit processor declared a fully imputed interim dividend of 10c per share.

The company said the negative factors contributing to the lower result included a smaller than expected volume of gold kiwifruit and problems with the quality of the fruit.

"The quality issues and issues related to grade interpretation resulted in lower throughputs at facilities and lower margins," Seeka said.

The company expects to post a full year operating profit after tax of $1.9 million to $2.4 million, significantly down on prospectus levels of $3.358 million.

Since the end of last year Seeka has bought firms Eleos and BridgeCool Holdings plus a strategic stake in Opotiki Packing and Coolstorage.

Following the purchases, the company kept the business units separate throughout the 2005 harvest.

"Accordingly benefits arising from more efficient use of post-harvest facilities and gains from rationalisation have been deferred, as planned, and will occur as the business is drawn together into a single operating unit ahead of harvest 2006," the company said.

The company listed on the stock exchange in July, after issuing 2.1 million shares at $4.00 each in a one-for-four rights issue to exiting shareholders. It was founded in 1987 and its shares traded on the Unlisted market in 1995 until it moved to the NZAX alternative market in November 2003.

Shares in Seeka last traded on October 21 at $3.90.

- NZPA