Seeka (SEK) H1 2024 earnings summary

Executive summary

• Achieved a significant rebound in kiwifruit volumes in New Zealand and Australia, with total Class 1 trays handled up 44% year-over-year and Australian kiwifruit volume up 164%.

• Profit before tax rose 230% to NZD 45 million for 1H24, driven by improved yields and operational efficiencies.

• Revenue increased 34% to NZD 284.2 million, reflecting a rebound from the poor 2023 harvest and successful cost control measures.

• Strong operational performance supported by improved fruit quality, full labor availability, and automation investments.

• No interim dividend declared; Board to consider dividends after full year results are confirmed.

Financial highlights

• Revenue: NZD 284.2 million, up 34% year-over-year.

• EBITDA: NZD 68.4 million, up 88% year-over-year.

• Profit before tax: NZD 45 million, up 230% year-over-year.

• Net profit after tax: NZD 17.1 million, after a one-off deferred tax adjustment of NZD 13.9 million.

• Cash flow from operations: NZD 50.5 million, up from NZD 4.5 million in 1H23.

Outlook and guidance

• Full year profit before tax guidance increased to NZD 17–21 million, up from NZD 15–19 million, reversing last year’s loss.

• Early indicators for 2025 crop are positive, with improved winter chill units across all regions.

• Board to consider dividend declaration later in the year, pending confirmation of full year results.

• Positive outlook supported by favorable weather, strong winter chill, and ongoing operational improvements.