Seeka Limited [NZX:SEK] has confirmed its current year earnings forecast with
profit after tax from normal operations activity expected in the range $7.0m
to $8.0m [EPS between $0.44 and $0.50].
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 [EPS
between $0.59 and $0.66].
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.
The Company has been reviewing its kiwifruit crop estimates for harvest 2017
as part of its normal budgeting and forecasting processes. 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. 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.
Seeka has reviewed its budgets for the coming year. The Company anticipates
increased earnings from its emerging and Australian businesses, but lower
earnings from kiwifruit businesses. Accordingly, the Company is forecasting
lower operational earnings for 2017 of up to 15%.
The Company will update the market should there be any further change to
outlook.
Release ends.
For further information please contact:
Michael Franks Seeka Chief Executive 021356516
Stuart McKinstry Seeka Chief Financial Officer 0212215583
End CA:00294652 For:SEK Type:FORECAST Time:2016-12-20 16:34:38