Leading New Zealand kiwifruit grower-packer Seeka has exceeded its financial forecast for 2013, announcing a profit of NZ$3.3m (US$2.7m) before tax.
The performance significantly betters the guidance range of NZ$1.7m-NZ$2.2m (US$1.4m-1.8m) issued to shareholders in October last year.
The readjusted figure after tax, NZ$2.7m (US$2.3m), was significantly down on the NZ$5.8m (US$4.8m) profit Seeka recorded in 2012.Overall revenue also fell 10 per cent from NZ$108.3m (US$90.4m) in 2012, and 30 per cent from NZ$138.8m (US$115.9m) in 2011.
However, the company said it was pleased with the performance after an industry-wide downturn in production as a result of Psa.
“The company has successfully absorbed the downturn in fruit volumes and margins caused by Psa,” Seeka said in a statement issued via the New Zealand stock exchange.
“The lower revenue reflects the drop in volume of Zespri Hort16A gold fruit (less is being grown and processed). Volumes are expected to recover from 2015 when the new, disease tolerant Zespri G3 variety comes on-stream. Seeka’s strategy to weather the Psa-V outbreak in recent years included selling surplus non-core assets, reducing debt, restructuring operations to reduce costs, and limiting capital expenditure.”
