Seeka Limited Analysis

Overview

Seeka is an integrated horticultural and produce company that grows, processes, distributes and markets high quality produce to world markets. An international business based in New Zealand focused on orchard-to-market excellence.

Seeka's core business is kiwifruit and it is a key supplier of New Zealand fruit to the global kiwifruit trade, via marketer Zespri, with around 21% market share. Seeka has invested capital to increase supply and processing capabilities as the industry anticipates growth with new gold kiwifruit variety.

Seeka continues to expand its product portfolio and capture value in emerging markets such as avocados while growing its geographical reach - now operating in Australia and Northland in addition to the Hawkes Bay, Bay of Plenty and the Coromandel. Seeka has a dominant market share with its Australian grown kiwifruit being supplied to local and export markets and nashi supplied to the local market.

Seeka provides an investment entry point to New Zealand kiwifruit and avocados and is poised for further growth.

Performance

The following information was extracted from Seeka Limited's Full Year results, released on 27 February 2025:

Listed New Zealand produce handler Seeka Limited [NZX:SEK], with operations in New Zealand and Australia, reports its audited results for the year ended 31 December 2024.

$411 million operating revenue — up 37% on FY23

$76 million EBITDA — up 193% on FY23's $26 million

$30 million net profit before tax — up from $21 million loss FY23

51 cents earnings per share, pre deferred tax adjustment — up from $0.35 loss FY23

10 cents dividend paid January 2025

5 cents dividend to be paid 15 April 2025

Seeka is pleased to announce its audited financial results for the year ended 31 December 2024.

Seeka reports a return to profitability with a record $29.7 million profit before tax, within the $27.5 million to $31.5 million range signalled to the market.

"Seeka’s 2024 revenue of $411 million was up 37% on 2023’s $301 million. The $110 million increase in revenue was driven by higher volumes handled in New Zealand and Australia,” says Seeka chief executive Michael Franks.

"Better growing conditions lifted yields with Seeka's New Zealand post-harvest operations handling 43 million class 1 trays of kiwifruit, a 44% jump from 2023. Seeka also achieved an 166% increase in production from our Australian kiwifruit orchards, selling 2.3 million kilograms of our Australian-grown kiwifruit.

"Seeka's focus is to lift its financial profitability, reduce debt and improve its balance sheet ratios while delivering excellence and an outstanding service to its growers and customers.

"Profit before tax was up 242% to $30 million, which is a $51 million turnaround from a $21 million loss before tax in 2023.

"Profit after tax was $8.8 million compared to a $14.5 million loss after tax in 2023. Seeka's financial results in 2024 include a $12.5 million one-off non-cash deferred tax charge due to the government’s removal of tax deductibility of depreciation on buildings.

"Earnings per share, excluding the deferred tax adjustment, was 51 cents, compared with 2023’s loss of 35 cents per share.

"Record profit before tax was achieved during a period of high interest rates and higher debt levels. Seeka is set to benefit from lower interest rates, having also lowered net debt by $35 million in 2024.