A bumper kiwifruit crop, smart automation, and a finely tuned strategy have propelled Seeka to a record half-year profit. From orchard to export site, the Bay of Plenty-based company is reaping the rewards of a season where everything came together, reports David Porter.
Bumper crop. Photo: Seeka
It started with a crop that exceeded expectations.
At Seeka’s Paengaroa headquarters in the Bay of Plenty, the mood was buoyant as trays of kiwifruit rolled off the packing lines – more than ever before.
By the end of June, the company had posted a record half-year profit of $37.8 million.
Volumes exceed expectations. Photo: Seeka
Chief executive Michael Franks calls it “fantastic,” a result powered not just by volume, but by a business firing on all cylinders. “It is tough times, but volume fixes a lot of sins,” Franks tells The News.
While trading conditions had not been easy, Seeka has had a really remarkable run.
Behind the scenes, Seeka’s investment in automation was paying off. Across its 11 New Zealand export sites, the company packed a record 47.1 million Class 1 trays of kiwifruit, up from 43.0 million in the same period last year. The packing lines ran smoother, faster, and more efficiently than ever before.
Improved growing conditions benefited Seeka’s New Zealand orcharding and post-harvest businesses, while its SeekaFresh business continued to build on its base, the company adds in a release.
The company’s products include kiwifruit, kiwiberries and Hass avocados, with the new GEM avocado variety currently in development. It also has extensive operations in Australia.
Well-positioned for growth. Photo: Seeka
Seeka’s orchard-to-market model, which sees the company involved in every step from growing and picking to packing and selling, delivers premium produce to leading retailers and wholesalers, both in New Zealand and overseas.
The company grows, picks, packs, coolstores, and supplies and sells directly to its retail and wholesale customers. The company says the Seeka brand is gaining a strong following amongst consumers and produce handlers.
Seeka’s Australian business increased overall production and earnings following a good growing season and the introduction of new produce lines.
Earnings before interest, taxes, depreciation and amortisation for the six months lifted to $83.5 million from $68.4 million in the pcp.
Net profit before tax was up 32 percent to $59.4 million, and net profit after tax of $37.8 million was more than double the pcp’s $17.1 million.
Seeka’s financial performance benefited from investments in post-harvest automation. The company packed a record 47.1 million trays of kiwifruit across its 11 New Zealand export sites.
Franks notes the operating results are the result of a deliberate strategy enacted by the company.
“Seeka is well-positioned for future growth with a strengthening balance sheet, and has automation projects under way to handle the anticipated growth in New Zealand’s kiwifruit industry.”
From orchard to export, Seeka’s story this season is one of resilience, innovation, and a harvest that delivered more than just fruit — it delivered confidence in the future.
Bumper crop. Photo: Seeka
