Seeka Limited (NZX: SEK) Announces its 31 December 2020 Result

Friday 26th February 2021

Listed New Zealand produce handler Seeka Limited, with operations in New Zealand and Australia, has today reported its audited results for the year ended 31 December 2020.

* $15.2m net profit after tax - up 120% on 2019

* $0.12 per share dividend payable 30 March 2021

"Seeka delivered excellent performance for growers, consumers and investors in 2020. The company generated higher profit, lowered debt and maintained shareholder dividends. Our customers were delighted with the quality of our produce," says Seeka chief executive Michael Franks.

"Seeka completed all harvests in New Zealand and Australia; an outstanding achievement by our staff and contractors who continued to provide an essential service as Covid-19 threatened their health and the welfare of their whānau. Our people responded with commitment and innovation to deliver business continuity to our stakeholders and outstanding results to our growers and shareholders. We strive to provide our growers with a service they can trust, and our customers with a reliable supply of high-quality produce. Our team focussed on getting the job done.

"Revenues from our New Zealand retail service operations increased 77% and the business generated excellent returns for our avocado and kiwiberry growers with Seeka managing the full value chain from orchard to market.

Dividend announcement

A dividend of $0.12 per share has been declared by the Board. The dividend is fully imputed and will be paid 30 March 2021 to all shareholders on the register at 5pm on 5 March 2021. The dividend reinvestment plan will apply with a 2% discount to the strike price. The total dividends distributed or declared in the 12 months to 31 December 2020 is $0.22 per share.

Outlook

Seeka remains focussed on delivering its strategy to deliver incremental earnings and returns to both shareholders and growers. Lifting the base business operating profits is one of our strategic platforms. While kiwifruit is Seeka’s foundation crop, the company also has a growing fruit bowl including avocados, kiwiberry, nashi and European pears across New Zealand and Australia. We are a growth company and we continue to focus on profitable growth.

Analysis of future crop volumes indicate that Seeka has sufficient post harvest capacity for the 2021 and 2022 seasons, with additional capacity required for 2023. The company is evaluating options and is considering the development of a new post harvest complex on the Pukenga Orchard in Young Road, Te Puke. The Board is expected to consider this investment mid-year with any construction occurring in 2022.

Please see the links below for details:

Annual Report - 31 Dec 2021

Results Presentation -31 Dec 2020

Announcement Template - 31 Dec 2020

Announcement - Financial Result 31 Dec 2021

Source: Seeka Limited

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