I have been reading the recent results announcement from SEK in more detail. Obviously some traders/investors have taken note as the SP has risen 16% in the few weeks since announcement.
The numbers were spectacular with an increase in revenue of 35%, EBIDTA up 78%, EPS up 124% and a continuation of a steady increase in dividend.
Reading the announcement shows clearly how Seeka is successfully increasing its main Kiwifruit business, growing, harvesting, packing and storing. At the same time they also seem to successfully be implementing quite a significant diversification into other varieties of fruit, particulary avocados and also various tropical fruits.
Then we have the Australian business that has started contributing to SEK. Investment is taking place over there in more crop and storage and packing facilities as well as implementations of more efficient systems for the operation as a whole. Seeka now has year round branded produce in the Australian market. This is big news.
Kiwifruit in NZ next season is unlikely to yield the same as this year’s record harvest but that will be offset from an increase in Australia and the fact that the grower loyalty scheme is now finished. This cost SEK $7.2m in the last 3 years and the end of this should now flow straight to the bottom line.
With the business increasing this fast, net debt increased by almost $ 20M up to $ 73M against total assets of $ 197M.
This company in my view is still quite cheap despite recent good SP gains, on a current PE of around 8-9. The forward statements at the upcoming AGM will be of real interest. Seeka is steadily changing into a much more diversified business.
seeka certainly performing , sad I sold out ( only cause it was to illiquid for my liking) costa going good too so maybe the sector flavour of the yr at the moment
Yes, if any ST members attending the meeting, can they please post any details that may not be in the report. Especially any q's and a's from investors.
Thanks
Yes, if any ST members attending the meeting, can they please post any details that may not be in the report. Especially any q's and a's from investors.
Thanks
I dont think the venue or even city has been announced were the AGM is going to be held. I only managed to find an intend of holding the AGM on the 27-4-17.
I dont think the venue or even city has been announced were the AGM is going to be held. I only managed to find an intend of holding the AGM on the 27-4-17.
I think Tauranga/Mt Mauganui is a safe bet forest. Or maybe the new office facilities outside Te Puke ??
Good article thanks IAK. I know the CEO has been roadshowing amongst iwi quite a bit recently. I wonder if that fact has been helping with the steadily increasing SP. SEK certainly seem to be doing well and a lot happening.
Happy holder :-)
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