Seek forecasts higher underlying earnings

Strong sales, cost savings and significant one-off gains has seen kiwifruit exporter Seeka lift and narrows its full-year profit guidance.

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Photo: RNZ/Carol Stiles

The company expects underlying earnings between $15 million and $17m, compared with its previous guidance of between $9m and $12m

In a statement to the stock exchange, the company said the update reflected an improvement in its operational earnings, cost savings and the gain it expects from the sale and lease back of its Australian kiwifruit orchards.

Covid-19 and the drought had cost the company about $10m but despite this, its underlying profit was still ahead of its 2019 result.

The company is in the process of completing the sale and lease back of its orchards in Australia.

The deal, for $A26m ($NZ27.4m) had received approval from the Australian Foreign Investment Review Board.

Seeka said money from the sale would be used to pay down its bank debts.

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