SEK
26/02/2016 17:27
FLLYR
PRICE SENSITIVE
REL: 1727 HRS Seeka Kiwifruit Industries Limited
FLLYR: SEK: Seeka announces its 31 December 2015 result
Seeka is pleased to present its audited financial results for the year ended
31 December, 2015. This year's growth in revenue
and profits is consistent with strategy. The key components of that growth
include:
o Another year of strong orchard recovery from the devastating impact of
Psa-V particularly the Zespri SunGold ( G3)
variety.
o Strategically planned diversification of Seeka's business in Australia and
New Zealand and by applying our expertise to
additional fresh produce lines.
o The purchase and integration of the business of Bunbartha Fruit Packers,
now Seeka Australia, in the last quarter of the
year.
On 4 March 2015 a fire at Oakside our largest packhouse facility caused
significant operational disruption two weeks before
the kiwifruit picking season commenced. Additionally the fire caused
considerable downstream impact on load out plans and
fruit storage. A number of insurance claims were lodged with insurers for
losses and costs arising from this fire. Not all claims
were finalised and accepted by the insurers at year end.
Net profit after tax of $4.27m is ahead of guidance released to the market of
between $2.96m and $3.53m (the range in the
forecast/guidance was partly due to the uncertainty of pending insurance
claims).
Financial Highlights
o $142.11m total revenue, up 22.9% on the previous corresponding period
(pcp).
o $13.93m EBITDA, up 23.4%.
o $7.21m EBIT up 29.5%.
o $5.25m profit before tax, up 23.0%.
o $4.27m profit after tax, up 34.8%.
o $0.29 earnings per share, up 31.8%.
o $4.34 net asset backing per share, up 6.6% (total assets of $164m up 50% on
the pcp).
o $1.80m operational cash flow, down from $8.53m, reflecting an additional
$4.53m investment in growing crops (firstyear
Australian crops were valued at $4.5m).
o $2.52m in cash dividends distributed to shareholders, up from $2.17m.
The company's profitability over two years has increased significantly with
profit after tax of $4.27m up 86%, and earnings per
share of $0.29 up 69% during the last 24 months.
Total debt of $52.96m at 31 December compared with $17.2m for 2014. The
company has invested $20.16m in Seeka
Australia, an additional $5.7m in growing crops, and $16.39m in New Zealand
on additional fruit processing and storage
facilities.
The financial results include a one-off net $0.32m insurance-related cost for
the fire which caused $5.46m in property losses,
and $1.12m in purchase costs for the Australian business which includes
$0.60m of stamp duty. These items are included in
expenses throughout this commentary.
Dividend Announcement
The directors have declared a fully-imputed dividend of $0.10 per share. The
dividend will be paid 24 March to those
shareholders on the register at 5pm on 18 March, 2016. The dividend
reinvestment plan will apply to the dividend. This
dividend declaration brings fully imputed dividends distributed to
shareholders in the past year to $0.19 per share, compared
to $0.16 per share in 2014.
See attached full commentary
End CA:00278444 For:SEK Type:FLLYR Time:2016-02-26 17:27:57
