Seeka

[Sideshow Bob]

just a paper entry , nothing to worry about. market liked the announcement eh :p

Well it wasn't even marked price sensitive!!

[bull....]

Well it wasn't even marked price sensitive!!

must have been , the stocks on a tear since the announcement

[Sideshow Bob]

https://www.nzx.com/announcements/436607

Listed New Zealand produce company Seeka [NZX:SEK], reports its unaudited interim results for the six months ended 30 June 2024.

- $284.2m Revenue — up 34% on six months to June 2023 previous corresponding period (pcp)
- $68.4m EBITDA — up 88% on pcp
- $45.0m NPBT — up 230% on pcp
- Forecast full year NPBT updated to be between $17m to $21m — up from ($21m) loss FY23

"Seeka has lifted its financial performance following increased kiwifruit volumes in New Zealand and Australia," says Seeka chief executive Michael Franks.

"Net profit before tax is up 230% to $45 million for the six months to June 2024, with Seeka handling 44% more kiwifruit in New Zealand. Earnings before interest, tax, depreciation and amortisation was up 88% to $68 million, with net profit after tax up 63% to $17 million, after a $14 million one-off deferred tax expense from changes in tax legislation for tax deductibility of buildings.

"Following two challenging seasons, kiwifruit volumes have rebounded with Seeka handling a record 43 million class 1 trays for New Zealand growers. Fruit quality is excellent, and international market demand remains strong.

"Along with its post-harvest business, Seeka also grows and sells fruit in New Zealand and Australia. In New Zealand, our orcharding business grew 17 million trays, a 53% increase on 2023, and production from our Australian kiwifruit orchards was up 164%.

"Along with the 34% lift in revenues to $284 million, Seeka restructured in 2023 to create a leaner organisation and implemented innovative cost saving mechanisms, including a captive insurance structure.

"Net bank debt of $171 million is down $6 million on June 2023. The company continues to focus on debt management with $53 million received in July 2024.

"Seeka has the capacity to handle more than 50 million trays of kiwifruit with facilities in Northland, the Coromandel, Bay of Plenty and Gisborne regions. Automated post-harvest systems have delivered efficiency gains and the packing power to efficiently conduct the harvest. Seeka has co-invested in New Zealand to increase fruit production, and in Australia we have directly invested in new orchards growing kiwifruit, nashi and jujube.

"Seeka has created a leaner business and we are now focused on preparing for the 2025 harvest. Kiwifruit vines like the cold winter conditions we are currently having, and early indicators are for a good spring bud break.

"New Zealand's kiwifruit industry has a vibrant outlook, and growers are continuing to invest in new SunGold and RubyRed orchard developments. Our investments in post-harvest automation means Seeka is well prepared to handle the upcoming lift in production as we work to supply the world with premium New Zealand kiwifruit."

Updated full year operational guidance
Seeka’s full year outlook has improved and the forecast NPBT has increased from June 2024's guidance of $15m to $19m, to a NPBT between $17m to $21m for FY24.

Seeka reminds stakeholders that it operates in a seasonal industry with substantial earnings occurring in the first six months as fruit is harvested in New Zealand and Australia.

Dividend
The Board has determined it is not appropriate to pay a dividend at this time. The Board will consider dividends later in the year on confirmation of full year guidance.

[Toddy]

Seeka has the advantage of having the cool storage capacity for the next few seasons which will be taken up as volumes grow.

Eastpack was full, so our dollars are used to build more coolstores. Then we instantly lose 40 percent of our value invested as there is no liquidity in the stock.

Subject to the weather, Seeka is now set up for the future.

[iceman]

Seeka has the advantage of having the cool storage capacity for the next few seasons which will be taken up as volumes grow.

Eastpack was full, so our dollars are used to build more coolstores. Then we instantly lose 40 percent of our value invested as there is no liquidity in the stock.

Subject to the weather, Seeka is now set up for the future.

Agree totally !!!

[Perky]

Hey Toddy, would seeka and eastpack ever merge or buy one out…or is that like North Korea and South Korea becoming best mates?
Sort of let growers grow stuff and the packers and post harvest pack stuff. Let the listed vehicle bring the money from outside
Hold a few seeka but wonder why seeka needs to own orchards…seem to make most money from packing.
Cheers

[Toddy]

Hey Toddy, would seeka and eastpack ever merge or buy one out…or is that like North Korea and South Korea becoming best mates?
Sort of let growers grow stuff and the packers and post harvest pack stuff. Let the listed vehicle bring the money from outside
Hold a few seeka but wonder why seeka needs to own orchards…seem to make most money from packing.
Cheers

We are currently going through a painful and slow exercise at Eastpack where the free riders are now having to share up to a share per tray packed.
Stage one is to buy out the dry shareholders ( growers that no longer supply fruit) and transfer shares to under shared growers
This exercise will take a number of years to complete.

Once completed, or atleast 80 percent complete, only then would you get enough support to merge and dump the communist Co op model. Because all growers would benefit financially.


Trying to get farmers to agree on anything is almost impossible unless they are going to benefit financially today. Of course times are naturally changing because the average age of an orchard owner is something like 67 now. The old generation way of thinking will not be so much of an issue.

In summary. Yes, I can see the benefits of Seeka and Eastpack becoming a single operation in the future.

[Perky]

Thanks for reply. Im not connected to industry so appreciate your knowledge and industry experience.

Just a muppet investor…
I researched industry and only saw a bright future. I feel seeka got slammed a bit with the timing and delay of the automation, then Covid, then fruit qnty and quality.

Bought some seeka years ago at $5 …got wind there were issues and sold them at $4.80 and sat on the sidelines for a few year…bought them back at $2.21 last year…feel I’ve derisked my entry price and ready for the ride back up the escalator…lol

Any update on the mouse on the ship? Who paid..lol

[Toddy]

Zespri sent out the first per tray return forecast two days ago. They said that gold growers returns have been impacted by the mouse.

Insurance is still probably aong shot, but may get partial recovery.

A number of Zespri staff got a nice overseas trip out of the saga to make sure that the fruit was dumped. And we got the usual bs that you get now days..... The dumped fruit was being used to make some bio mass fuel.
I was thinking, yeah right, it's in people's fruit bowls.

[Perky]

Good luck to you.
Love the industry…but my holding is pretty small.
As a lifelong yachtie …get nervous with any business with Mother Nature on the share register…lol

[Getty]

$109M market cap at $2.50 sp.
$17M to $21M NPBT forecast.

Hmmm due for a rub of the Green, or a touch of the Gold...

[Toddy]

You have to remember that alot of Seeka's issues were of their own making (questionable management decisions).
These have been ironed out now into a slicker operation. So I can see upside here.

I will take mother nature any day of the week. Sure a storm effects my income, but it also produces decent waves to surf.

The alternative of sitting in meetings all day when I was an accountant, and paying maximum paye is not good for my wellbeing.

[bull....]

good result , looks like getting back on track. record half revenue. pretty good yield at current prices when they get back to near previous div's

[nztx]

good result , looks like getting back on track. record half revenue. pretty good yield at current prices when they get back to near previous div's

Been a while .. Sep 24 looks like the 5th HY where no dividend paid by SEK

Hope they haven't forgotten how it's done ;)

Can the long & twisting saga that started with Covid in H1 2022 and dragged on ever since be spun out for a sixth HY of not dishing out some Kiwi Fruity delights to the impoverished starving boys & girls who had high hopes for a bit of the steady normal & six monthly payouts ? :)

Perhaps the sixth will be the record divie to make up for all the earlier ones forgone ?

[bull....]

Been a while .. Sep 24 looks like the 5th HY where no dividend paid by SEK

Hope they haven't forgotten how it's done ;)

Can the long & twisting saga that started with Covid in H1 2022 and dragged on ever since be spun out for a sixth HY of not dishing out some Kiwi Fruity delights to the impoverished starving boys & girls who had high hopes for a bit of the steady normal & six monthly payouts ? :)

Perhaps the sixth will be the record divie to make up for all the earlier ones forgone ?

yep no div's for yr's , but not there fault. prob got to get there high debt under control before the lollies flow. plenty of cash to come with all there cash there helped growers with to pay expenses

[kiwikeith]

$109M market cap at $2.50 sp.
$17M to $21M NPBT forecast.

Hmmm due for a rub of the Green, or a touch of the Gold...

Seems reasonable value on those metrics. mid forecast of $19m NPBT is probably around $13-14m NPAT so a price earnings ratio of 8. That is not expensive if you think the $19m NPBT is going to be a normal year. Once the directors are comfortable with the debt levels, I assume the dividends will start to flow.