Seeka Limited Returns to Profitability Amid Higher Fruit Volumes

Highlights:

• Seeka Limited (NZX: SEK) Returns to Profitability – The horticulture company posted an $8.7 million net profit after tax, rebounding from a loss of $14.4 million the previous year.
• Record Pre-Tax Profit – Seeka reported a pre-tax profit of $29.7 million, aligning with its earlier forecasted range of $27.5 million to $31.5 million.
• Impact of Tax Policy Change – Results included a $12.5 million non-cash deferred tax charge due to the government’s removal of tax deductibility on building depreciation

Strong Financial Recovery for Seeka

Seeka Limited (NZX: SEK) has made a notable turnaround, reporting a net profit after tax of $8.7 million for the year ending December 31. This marks a significant improvement from the $14.4 million loss recorded in the previous year. The horticultural company also posted a record pre-tax profit of $29.7 million, aligning with its earlier market projections of $27.5 million to $31.5 million.

Revenue Boost from Increased Fruit Volumes

The company’s return to profitability was largely driven by higher fruit volumes, which helped offset broader industry challenges. Seeka’s revenue surge reflects the strong demand and improved operational efficiencies within its supply chain.

Impact of Tax Changes

Despite the positive earnings, Seeka’s results were affected by a $12.5 million non-cash deferred tax charge due to the New Zealand Government’s decision to eliminate tax deductibility for depreciation on buildings. This regulatory change impacted the company’s bottom line but did not overshadow the strong operational gains.

Positive Outlook for Future Growth

Seeka’s financial rebound highlights its resilience in the horticulture sector. The company is focused on optimizing its operations and expanding market reach to sustain long-term growth. At the time of writing, industry analysts remain optimistic about its performance in the coming year.

Seeka’s recovery underscores the potential for sustained profitability, bolstered by efficient operations and a strong market presence in the fresh produce industry.

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