Seeka, New Zealand’s largest fully integrated kiwifruit supply company, says its 2011 earnings will take a hit as a direct result of Psa-V.
In its updated forecastreleased today (October 28)for the financial year ended December 31 , Seeka predicts earnings before interest, tax, depreciation, fair value adjustments and asset revaluations to be in the range of NZ$18.5m and NZ$19.5m. This compares with NZ$19.9m for the nine months to 31 December 2010 and NZ$18.8m reported for the 6 months to 30 June 2011.
Meanwhile, Seeka’s forecast net profit before tax is expected to be NZ$10.6m-NZ$11.6m. This compares with $12.9m for the nine months to 31 December 2010.
Lower fruit returns account for the majority of the difference between periods, Seeka said, explaining that Psa-V has been detected on 341 gold hectares out of 517gold Seeka supplying orchardhectares. Psa-V has also been detected on approximately 428 green hectares of a total 2,130 green Seeka supplying hectares, Seeka said.
Secondary symptoms have been detected on both green and gold orchards. Seeka has identified Psa-V as being present on nine orchards that it leases under long-term lease arrangements. These positive detections cover 89 gold hectares and 22 green hectares.
“The above statistics do not mean that all the kiwifruit vines on the affected orchards under long-term lease will be lost, but the outcomes are uncertain,” Seeka said in its statement.
Seeka said it has taken proactive steps to reposition its cost structure in the face of anticipated lower revenues.
Some 41 roles have been restructured at a one-off net cost of NZ$600k in the current year. A programme of selling surplus assets to reduce debt is also underway.
No comments yet