Seeka

[iceman]

LOWER VOLUME equals higher prices usually !!

They have lowered their EBIDTA guidance by $4m

[BlackPeter]

A big downgrade due to unusually hot summer both in NZ and Australia. Will be interesting to see if Mr Market reacts https://www.nzx.com/announcements/334328

Interesting - analysts based their estimates on a Group EBITDA of only $30.7m in FY2019: https://www.marketscreener.com/SEEKA...60/financials/

If the company now forecasts a group EBITDA of between $32.5m and $33.5m, than this actually would be an earnings upgrade ;

But anyway - it is a seasonal business and I assume that competitors are hit in a similar way, though I am a bit surprised about the reduced harvest: We had (on our mid Canterbury "orchard") this year a bumper harvest ... but obviously - not everybody has as great climatic conditions as we have (and no, we neither grow Kiwifruit nor Avocado);

[iceman]

Agree BP. I don't think this downgrade will have much effect on investors or SP. People invested in this game are there for the long term and take the good with the bad in this industry.

[bull....]

big downgrade . in nz not surprised hot weather means smaller fruit and more to fill a tray. AUS big dis appointment but again hot weather is the cause.
As i mentioned sometime back it wasnt worth re entering as growth would be constrained for a while in this company

[peat]

Agree BP. I don't think this downgrade will have much effect on investors or SP. People invested in this game are there for the long term and take the good with the bad in this industry.

what he said.

[iceman]

what he said.

Definitely not. Shook out a few non believers :-)
Time to seriously think about re-entry, in a few months time !

[winner69]

Interesting - analysts based their estimates on a Group EBITDA of only $30.7m in FY2019: https://www.marketscreener.com/SEEKA...60/financials/

If the company now forecasts a group EBITDA of between $32.5m and $33.5m, than this actually would be an earnings upgrade ;

But anyway - it is a seasonal business and I assume that competitors are hit in a similar way, though I am a bit surprised about the reduced harvest: We had (on our mid Canterbury "orchard") this year a bumper harvest ... but obviously - not everybody has as great climatic conditions as we have (and no, we neither grow Kiwifruit nor Avocado);

Guru analysts probably hadn’t included the $5.6m IFRS16 adjustment

[Jaa]

A big downgrade due to unusually hot summer both in NZ and Australia. Will be interesting to see if Mr Market reacts https://www.nzx.com/announcements/334328

Not sure I would see this as a one off, it could be the new normal. Climate change, global deforestation and loss of diversity will ensure many more hot and dry summers with less natural pollinators in the years ahead.

A new cultivar could eventually be needed.

[sb9]

Looking to get rid of Aussie orchards and rightly so as not much growth coming from there.

[percy]

Sale and lease back.