Listed New Zealand produce handler Seeka Limited, with operations in New Zealand and Australia, has today reported its
audited results for the year ended 31 December 2023.
Loss before tax of $21.0 million is in line with the previously announced guidance of $20 million to $25 million loss
before tax.
$48.7 million gross profit — down 29% on FY22's $68.3m
$26.0 million EBITDA — down 44% on FY22's $46.1m
($14.5) million net loss after tax — down from $6.5m net profit FY22
"The 2023 harvest was difficult right across the horticultural sector, as a warm wet winter, cyclones and hail
significantly impacted orchards in New Zealand and Australia", says Seeka Chief Executive, Michael Franks. "Yields were
down across the industry, with Seeka only handling 30 million trays of Class 1 New Zealand kiwifruit in 2023, compared
with 42 million in 2022.
While 2023 volumes were materially down, Seeka’s operational performance between the orchard and point of sale was
excellent. "More than 99% of the kiwifruit we packed for our growers was delivered on time and in spec to the marketer
Zespri, and the quality of our fruit supplied to the international consumer was the best in the industry." explained
Franks.
The large drop in kiwifruit volumes, however, reduced Seeka's revenue for the year to $301 million, down from $348
million in 2022. This contributed to a full-year loss of $14.5 million after tax in 2023, compared to a $6.5 million net
profit in 2022.
Seeka responded to the seasonal downturn by suspending dividends and reducing overheads. This included establishing a
captive insurance structure to slow the impact of rising insurance costs. Having completed a number of post-harvest
automation projects, Seeka also reduced its capital expenditure. "In June our bankers provided a new $201 million
Sustainability-linked Loan facility that included covenant waivers that allow Seeka to focus on restoring profitability"
said Franks.
Seeka's total assets remained stable at $549 million, with $388 million invested in property, plant and equipment.
"Following a sustained period of investments, Seeka has a post-harvest infrastructure capable of handling more than 50
million trays of kiwifruit, which is forecast to efficiently handle short-term growth from our supplying growers" says
Franks.
Seeka is focused on restoring profitability in 2024 and reducing debt while maintaining the excellent operational
performance achieved in 2023 for its growers and customers.
Having invested in capacity and automation, Seeka is containing capital spend to maintenance, risk reduction, and
automation. "The La Niña weather system which impacted the last two seasons has now ended, and orchards are benefiting
from far better growing conditions. Kiwifruit vines are holding high levels of fruit, and the industry's forecast of
record volumes will allow Seeka to realise the full efficiencies of our highly-automated post-harvest facilities"
explained Franks.
"The 2024 Kiwiberry harvest and sales programme is nearing completion and the first RubyRed kiwifruit crops are being
packed. We have the capacity, systems and personnel to handle much higher volumes, and are looking forward to delivering
an excellent and profitable service to our growers and the markets", says Franks.
Seeka's Annual Report can be found here