NZ: Seeka's earnings and Hayward volumes set to slump in 2017 - FreshFruitPortal.com

NZ: Seeka's earnings and Hayward volumes set to slump in 2017

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NZ: Seeka's earnings and Hayward volumes set to slump in 2017

New Zealand's largest kiwifruit post-harvest operator Seeka (NZX: SEK) has confirmed its profit forecast for 2016 but predicts both earnings and Hayward volumes will take a tumble next year. kiwi_2615972

The company, which recently underwent a rebrand from Seeka Kiwifruit Industries, expects its net profit forecast for the current year to be in the range of NZD7-8 million.

"The additional earnings from the insurance claim related to the 2015 Oakside fire and settled during December 2016 increases the expected net profit after tax for the group from all activities to between $9.5m and $10.6m," it said.

"The Company has achieved a record financial year in 2016 aided by strong operational earnings, record crop volumes and the insurance settlement relating to the 2016 Oakside fire."

Seeka added it had been reviewing its kiwifruit crop estimates for the harvest during 2017 as part of its normal budgeting and forecasting processes, and said there would likely be some changes from this year.

"The fruit set for Zespri SunGold is expected to increase again in 2017 as grafted orchards come into production. This is in line with earlier predictions," it said.

"The Hayward [Green] crop however has generally suffered a lower fruit set across the industry than the record yields experienced in the last two growing seasons. The Hayward crop is anticipated to be lower by 20% to 25%, across the industry and for Seeka."

The organization said it anticipated increasing earnings from its emerging and Australian business, but lower earnings from kiwifruit.

"Accordingly, the Company is forecasting lower operational earnings for 2017 of up to 15%," it said.

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