Seeka

[Southern Lad]

Seeka and Eastpack are going to clean up with record volumes needed to be packed.

Zespri announcement this morning on resignation of CEO Dan Mathieson references "... the industry poised to deliver one of its largest ever crops to meet growing demand for Zespri Kiwifruit around the world". See 65aec9271507a31d3f928959.pdf (usx.co.nz)

Another indication that FY24 should be good for Seeka Post Harvest and Kiwifruit growing operations as it recovers from the very low volume FY23.

[Toddy]

Dan is probably over the non sayer growers. All of the major strategies that Dan put forward to preserve and grow the Industry were voted down under the 75 percent rule by the growers.

[bull....]

The main part of the growing season is over. The crop estimates are for a large crop. There still could be weather events to come, as alway, but everything is definitely as positive as it could be.

Seeka should make impressive revenue from packing the crop.

cheers for update. i have a small holding brought recently on expectations of improved yr ahead

[Balance]

Perfect storm for avocado growers :

https://www.rnz.co.nz/news/country/5...-industry-body

[Toddy]

Perfect storm for avocado growers :

https://www.rnz.co.nz/news/country/5...-industry-body

The writing has been in the wall for a very long time. The Australian volumes coming on stream with earlier crop maturity is starting to crush New Zealand growers.

I wouldn't call it a storm. I would call it a 'trend'.

[bull....]

Kiwifruit set to bounce back after two tough seasons

Craigs say looking good in the article

https://businessdesk.co.nz/article/p...-tough-seasons

[Southern Lad]

See Media Release today from Zespri on expected 2024 harvest levels:

Zespri preparing to return to strong growth in kiwifruit supply in 2024

[Toddy]

Harvest is about to get underway.

What I am hearing is that Seeka are looking at packing around 45m trays. Fruit is looking good in the main growing region of the Bay of Plenty. Fruit size is really small in Hawkes Bay and
Gisbourn.

So it's looking good. This is the first season where the packhouse can test all of the improvements with a full crop.

There is an excess of 2000 job applicants wanting work in the packhouse. I cannot confirm this number but you get the idea of what's happening with the workforce in New Zealand.

The post harvest operators are looking forward to packing this crop and rewarding both the grower through efficient packing and storage, and the shareholders for providing the capital.

Im personally with Eastpack, but hear from friends and read plenty about Seeka.

[Sideshow Bob]

Thanks Toddy.

Lets hope for a good season - they need it.

[Sideshow Bob]

Thanks Toddy.

Lets hope for a good season - they need it.

https://www.nzx.com/announcements/426972

Audited results for year ended 31 December 2023 (FY23)

Listed New Zealand produce handler Seeka Limited, with operations in New Zealand and Australia, has today reported its audited results for the year ended 31 December 2023. Loss before tax of $21.0 million is in line with the previously announced guidance of $20 million to $25 million loss before tax.

$48.7 million gross profit — down 29% on FY22's $68.3m

$26.0 million EBITDA — down 44% on FY22's $46.1m

($14.5) million net loss after tax — down from $6.5m net profit FY22

"The 2023 harvest was difficult right across the horticultural sector, as a warm wet winter, cyclones and hail significantly impacted orchards in New Zealand and Australia", says Seeka chief executive Michael Franks.

"Yields were down across the industry, with Seeka only handling 30 million trays of class 1 New Zealand kiwifruit in 2023, compared with 42 million in 2022.

"While 2023 volumes were materially down, Seeka’s operational performance between the orchard and point of sale was excellent. More than 99% of the kiwifruit we packed for our growers was delivered on time and in spec to the marketer Zespri, and the quality of our fruit supplied to the international consumer was the best in the industry.

"The large drop in kiwifruit volumes, however, reduced Seeka's revenue for the year to $301 million, down from $348 million in 2022. This contributed to a full year loss of $14.5 million after tax in 2023, compared to a $6.5 million net profit in 2022.

"Seeka responded to the seasonal downturn by suspending dividends and reducing overheads. This included establishing a captive insurance structure to slow the impact of rising insurance costs. Having completed a number of post-harvest automation projects, Seeka also reduced its capital expenditure.

"In June our bankers provided a new $201 million Sustainability-linked Loan facility that included covenant waivers that allow Seeka to focus on restoring profitability.

"Total assets remained stable at $549 million, with $388 million invested in property, plant and equipment. Following a sustained period of investments, Seeka has a post-harvest infrastructure capable of handling more than 50 million trays of kiwifruit, which is forecast to efficiently handle short-term growth from our supplying growers.

"Seeka is focused on restoring profitability in 2024 and reducing debt, while maintaining the excellent operational performance achieved in 2023 for its growers and customers. Having invested in capacity and automation, Seeka is containing capital spend to maintenance, risk reduction, and automation.

"The La Niña weather system which impacted the last two seasons has now ended, and orchards are benefiting from far better growing conditions. Kiwifruit vines are holding high levels of fruit, and the industry's forecast of record volumes will allow Seeka to realise the full efficiencies of our highly-automated post-harvest facilities.

"The 2024 Kiwiberry harvest and sales programme is nearing completion and the first RubyRed kiwifruit crops are being packed. We have the capacity, systems and personnel to handle much higher volumes, and are looking forward to delivering an excellent and profitable service to our growers and the markets", says Franks.

Release ends.