Seeka (SEK) H1 2024 earnings summary

Executive summary

• Revenue increased 34% year-over-year to $284.2m, driven by a significant rebound in kiwifruit volumes in New Zealand and Australia, with total Class 1 trays handled up 44% and Australian kiwifruit volume up 164%.

• Profit before tax surged 230% to $45.0m, supported by improved fruit quality, operational efficiencies, and automation investments.

• EBITDA rose 88% to $68.4m, and EBIT increased 150% to $54.5m compared to the prior year.

• Net tangible asset backing per share at NZD 5.92, well above the current share price.

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

Financial highlights

• Revenue: $284.2m, up 34% year-over-year; EBITDA: $68.4m, up 88%; EBIT: $54.5m, up from $21.8m; NPBT: $45.0m, up from $13.6m; NPAT: $17.1m, up from $10.5m.

• Gross profit: $79m, up 63% from the previous period.

• Basic EPS before tax adjustment: $0.74, up 196% year-over-year.

• Net bank debt reduced to $170.9m, down from $182.19m in June 2023, with strong cash flow and $53m received in July 2024.

• One-off deferred tax charge of $13.9m–$14m due to legislative change on building depreciation.

Outlook and guidance

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

• Early indicators for 2025 crop are positive, with improved winter chill units and favorable weather.

• Dividend decision deferred until confirmation of full year results.

• Continued focus on profitability, debt reduction, and sustainable investment in core infrastructure.