A major New Zealand kiwifruit grower and packer has announced a predicted short-fall in its annual interim profit report.
Seeka, a Te Puke company handling around 30 per cent of the national kiwifruit crop, said it expect full-year operating profit after tax to be between $1.9 million and $2.4 million - significantly lower than the $3.36 million originally highlighted in its prospectus.
"We are very disappointed," managing director Tony de Farias said. The company attributes its shortfall to projected lower returns in Seeka's role as a grower, and the fact that, when the prospectus was issued, the company did not have the first estimate of returns for the season from international kiwifruit marketer, Zespri.
Seeka is advising shareholders that dividends will be dependent on the fruit value returns from Zespri and a review of performance prospects at the end of the year.
Despite the revelation, the company said it expects to gain from rationalising its recently acquired businesses, including Eleos and the Bridgecool Corporation, in the 2006 season, and said this season was always expected to be one of consolidation.
