Seeka Updates EBITDA Guidance

12 March 2019

SEEKA UPDATES EBITDA GUIDANCE
Seeka Limited [NZX:SEK] provides the following updates.
2019 New Zealand kiwifruit crop estimate
Growing conditions in New Zealand have been dry through the late summer growing season. This lack of
rainfall will have a positive effect on fruit quality, but a negative effect on fruit size. Seeka provides the
following volume estimate for the 2019 season and will update the market on the completion of
packing.
Millions of Class 1 Tray equivalents 2018
Actual
2019
Estimate
Hayward 19.2 18.2
SunGold 10.8 13.5
Other varieties 0.3 0.4
Total 30.3 32.1

Seeka is in the process of formalising arrangements with growers for the upcoming 2019 harvest.
Grower Loyalty Share Scheme
Seeka confirms its intention to launch the Grower Loyalty Share Scheme this month as previously
announced and approved by Shareholders at a meeting on 14 February 2019.
EBITDA guidance updated
Seeka updates its previous guidance of EBITDA for FY2019 to a range of between $36.5m to $37.5m,
from the previous guidance of between $27.5m and $28.5m. The increase is the result of the following
matters [with the underlying earnings guidance unchanged]:

Northland Orchard sales process
As at 31 December 2018, Seeka had sold $7.0m of its Northland orchard portfolio releasing a $0.6m gain
on sale. Subsequent sales of Seeka’s Northland orchard portfolio that are either agreed or have settled
relate to an aggregate total sum of $25.9m, representing a gain on sale of $4.2m, assuming all sales
achieve settlement.
Seeka continues to market the remaining unsold Northland portfolio valued at a total aggregate cost of
$14.0m and no allowance for this is included in current guidance.
Effect of accounting standard changes
Seeka has adopted NZ IFRS 16, which changes the accounting treatment for leases held by Seeka,
resulting in an increase to the FY2019 EBITDA of approximately $5.6m, along with an increase in
depreciation and interest costs of $7.1m, resulting in a decrease in Seeka’s net profit before tax of
$1.5m.
In the early years of adoption, the interest and depreciation cost will be more than the previous lease
cost, and this effect will reverse over time. The cash cost of the lease is unchanged.

Ends.

For further information please contact:
Michael Franks Seeka Chief Executive 021356516
Stuart McKinstry Seeka Chief Financial Officer 0212215583