Q2 2026 Seeka Ltd Earnings Call

August 20, 2026

Michael Franks: Welcome to this analyst briefing update for Seeka's interim results for the six months ended 30 June. Very pleased to be online. Thanks very much for attending. We will run you through the pack that was released yesterday. Alongside me in the room, I have Nicola Neilson, our Chief Financial Officer, and Ian Burt, who is our Group Financial Controller, who really has been instrumental in bringing the accounts together for the six months. Welcome. Let me just run through the pack. The agenda today, we will be talking about the highlights, running you through the capital management, talking about our operating segment performance of each of the business divisions that we have running, and our forward focus. Just running you through the highlights quickly. We are delighted and very pleased to report a record six-month profit, NZD 62.6 million at a profit before tax level, up 5%.

Speaker #1: And to this endless briefing update for Seeka's interim results to the six months ended 30 June. Very pleased to be online. Thanks very much for attending.

Speaker #1: We'll run you through the pack that was released yesterday. Alongside me in the room, I've got Nicola Nelson, our Chief Financial Officer, and Ian Booth, who is our Group Financial Controller. Ian has really been instrumental in bringing the accounts together for the six months.

Speaker #1: So, welcome. Let me just run through the pack. The agenda today: we'll be talking about the highlights, running you through the capital management, talking about our operating segment, performance of each of the business divisions that we've got running, and our forward focus.

Speaker #1: Just running you through the highlights quickly. We're delighted and very pleased to report a record 6-month profit. 62.6 million dollars out of profit before tax, level up 5%.

Speaker #1: Earnings per share, at $1.07, is up 19%. So both of those are good numbers, particularly given that we had lower kiwifruit numbers in New Zealand.

Michael Franks: Earnings per share at NZD 1.07 is up 19%. Both of those good numbers, particularly given that we had lower kiwifruit numbers in New Zealand. Automations helped us to deliver efficiency gains, and actually improved our service to our growers. They had a very timely harvest. It was not a long wait. Technology has delivered an excellent pack out and excellent quality fruit, and so we are very happy with that. Three Raymoon solutions deployed. One is a front-end citrus machine at Orangewood. One is a complete, fully automated machine at our Kerikeri site in Waipapa Road. One is a machine at Huka Pak out here in Tauranga, which has not got all the automation in yet. We will be completing that this year, but we are very pleased with those. Our post-harvest EBIT, earnings before interest and tax, up 7% on 4% less fruit.

Speaker #1: Automations helped us to deliver efficiency gains and actually improved our service to our growers. They had a very timely harvest; it wasn't a long wait.

Speaker #1: Technologies delivered an excellent pack-out and excellent quality fruit, and so we're very happy with that. Three Raymond solutions were deployed: one as a front-end citrus machine at Orangewood, one as a complete fully automated machine at our Keti Keti site on Waipapa Road, and one as a machine at Hockapack here in Tauranga.

Speaker #1: Which hasn't got all the automation in yet. We will be completing that this year, but we're very pleased with those. Our post-harvest EBIT—earnings before interest and tax—is up 7% on 4% less fruit.

Speaker #1: So it gives you a little bit of insight into what could happen next. We've concentrated on our debt. We've concentrated on building financial resilience.

Michael Franks: It gives you a little bit of an insight to what could happen next. We have concentrated on our debt. We have concentrated on building a financial resilience. Our leverage ratio as measured by the bank's 1.22 times, down from 1.6 times. NZD 11 million reduction in net bank debt over the six months, and actually down NZD 51 million on the same time, two years ago. Same for the same period two years ago. Really, very strong performance all delivered from cash flow. NZD 685 million in total assets, up 5%. Net tangible asset backing per share up 11% at NZD 7.12, which includes the revaluations from last year. Also includes some exchange rate and variation on our Australian held assets. New Zealand dollar has dropped. Value of those assets in New Zealand dollar terms has gone up. That has increased the value of those assets for that category.

Speaker #1: Our leverage ratio, as measured by the banks, is 1.22 times, down from 1.6 times. That's an $11 million reduction in net bank debt over the six months.

Speaker #1: And actually down $51 million on the same time two years ago, for the same period two years ago. So, really very strong performance.

Speaker #1: All delivered from cash flow. $685 million in total assets, up 5%. Net tangible asset backing per share, up 11% at $7.12, which includes the revaluations from last year.

Speaker #1: Also includes some exchange rate variation on our Australian-held assets. The New Zealand dollar has dropped, so the value of those assets in New Zealand dollar terms has gone up.

Speaker #1: And so that's increased the value of those assets for that category. Importantly, we've achieved our sustainability milestones. We've achieved a 30% reduction in our greenhouse gas emissions—Category 1 and Category 2—from our 2022 base, which is what we targeted.

Michael Franks: Importantly, we have achieved our sustainability milestones. We have achieved a 30% reduction in our greenhouse gas emissions, category 1 and category 2 from our 2022 base, which is what we targeted. We are on track to deliver a 50% reduction by 2030. May well achieve that ahead of our target. Remarkable performance by those involved. We have taken the time, as you would expect us to carefully consider and monitor our financial performance as we are going. Our profit before tax guidance for the year has been increased from NZD 38 to NZD 42 million to between NZD 39 and NZD 43 million. We have announced a dividend, NZD 0.20 dividend to be paid, and I will talk about that again in a few minutes. Going through the numbers in some detail. Our revenue at NZD 305.5 million is just down 1%. New Zealand kiwifruit volume is down 4%.

Speaker #1: And we are on track to deliver a 50% reduction by 2030, so may well achieve that ahead of our target. So, remarkable performance by those involved.

Speaker #1: We've taken the time, as you would expect us to, to carefully consider and monitor our financial performance as we're going. Our profit before tax guidance for the year has been increased from $38 to $42 million, to between $39 and $43 million.

Speaker #1: And we've announced the dividend—a 20 cent dividend to be paid. I'll talk about that again in a few minutes, going through the numbers in some detail.

Speaker #1: Revenue at $305.5 million is just down 1%. New Zealand kiwifruit volume is down 4%. That is the driver of our business. EBITDA—earnings before interest, tax, depreciation, amortization—and salary per cash flow are up 3% to $86.3 million.

Michael Franks: That is the driver of our business. EBITDA, earnings before interest, tax, depreciation, amortization, seller per cash flow up 3%, NZD 86.3 million. We are largely driven by the investment and efficiencies. Gordon, I think I will ask the questions at the end of the presentation when we get there, if you do not mind. But I am happy to answer all questions when we do. Profit before tax, up 5% at NZD 62.6 million. We are in a seasonal operating business. We earn most of our money in the first 6 months. But although we are operating the second half, it is to a lesser degree, and actually, typically we go backwards. We have now included more color, literally, and detail around our segments in terms of the graphs. So both revenue, EBITDA, and total assets, you can see the increases we have achieved over time. Of course, 2023 was a difficult year.

Speaker #1: Largely driven by the investment and efficiencies. Gordon, I think I'll answer the questions at the end of the presentation when we get there, if you don't mind.

Speaker #1: But I'm happy to answer all questions when we do. Profit before tax is up 5% at $62.6 million. We are in a seasonal operating business.

Speaker #1: We earn most of our money in the first 6 months. But, although we are operating in the second half, it's to a lesser degree, and actually, typically, we go backwards.

Speaker #1: We have now included more color—literally and in detail—around our segments in terms of the graphs, so both revenue, EBITDA, and total assets. You can see the increases we've achieved over time.

Speaker #1: Of course, 2023 was a difficult year, but outside of that, all of the metrics look good. You can see that the bulk of our income, the bulk of our EBITDA, and the bulk of our assets are in post-harvest.

Michael Franks: Of course, 2023 was a difficult year. Outside of that, all of the metrics look good. You can see that the bulk of our income and the bulk of our EBITDA and the bulk of our assets is in post-harvest. We have been taking some time to work with the analysts in initiating coverage of the company. They have asked for a bit more detail about our business. We have moved to put those into this pack. That is one of the innovations that has been done at their request. Pushing through to capital management. Balance sheet, NZD 591.9 million in total capital employed, up 5%. Our property, plant, and equipment is up 8% at NZD 418.7 million. Our investments in post-harvest automation is there. We are building some RSE accommodation in Australia for our seasonal workers, which has been partially supported by the Australian government.

Michael Franks: Outside of that, all of the metrics look good. You can see that the bulk of our income and the bulk of our EBITDA and the bulk of our assets is in post-harvest. We have been taking some time to work with the analysts in initiating coverage of the company. They have asked for a bit more detail about our business. We have moved to put those into this pack. That is one of the innovations that has been done at their request. Pushing through to capital management. Balance sheet, NZD 591.9 million in total capital employed, up 5%. Our property, plant, and equipment is up 8% at NZD 418.7 million. Our investments in post-harvest automation is there. We are building some RSE accommodation in Australia for our seasonal workers, which has been partially supported by the Australian government.

Speaker #1: We've been taking some time to work with the analysts and initiate coverage of the company. They've asked for a bit more detail about our business, and we've moved to put those into this pack.

Speaker #1: And so that's one of the innovations that's been done, at their request. Pushing through to capital management, balance sheet: $591.9 million in total capital employed, up 5%.

Speaker #1: Our property, plant, and equipment is up 8% at $418.7 million. Our investments in post-harvest automation are there. We are building some RSA accommodation in Australia for our seasonal workers, which has been partially supported by the Australian government.

Speaker #1: And of course, the strong Australian dollar and weaker New Zealand dollar have revalued those Australian assets. We held $1 million of assets for sale at the end of June.

Michael Franks: Of course, the strong Australian dollar and weaker New Zealand dollar has revalued those Australian assets. We held NZD 1 million of assets for sale at the end of June. Those assets now have an agreement for sale and will be shortly settled. Not much, but really just working our way through. To the balance sheet, NZD 119.8 million in net backed debt at the end of June. It is a NZD 10.8 million decrease on last year, NZD 51.1 million on same time 2 years ago. Our banking facility at NZD 184 million. We have elected to reduce it by NZD 20 million. We have got a very strong and supportive banking syndicate behind us. We are working with them. We decided that we did not need to have facilities at over NZD 200 million, given that we are operating well below that. We have sensibly brought it down.

Speaker #1: Those assets now have an agreement for sale and will be shortly settled. And so, not much, but really just working our way through. In terms of the balance sheet, $119.8 million in net bank debt at the end of June.

Speaker #1: It's a $10.8 million decrease on last year, $51.1 million on two years—same time two years ago. Our banking facility is at $184 million.

Speaker #1: We have elected to reduce it by $20 million. We have a very strong and supportive banking syndicate behind us, and we are working with them.

Speaker #1: We decided that we didn't need to have facilities that are over 200 million, given that we're operating well below that. And so we've sensibly brought it down.

Speaker #1: Our net bank leverage ratio—EBITDA to debt, as measured by the banks—continues to improve and is actually below the bottom end of our targeted range.

Michael Franks: Our net bank leverage ratio, EBITDA debt as measured by the banks, continues to improve and actually below the bottom end of our targeted range. Our targeted range between 1.5 to 2.5 times, and now at 1.22. Earnings per share and dividends. EPS of NZD 1.7, as I previously mentioned, up from NZD 0.90. Dividends paid out in the last 12 months was NZD 0.50. We have announced an interim dividend of NZD 0.20 a share to be paid on 15 October. It is fully imputed, and the dividend reinvestment plan will apply to that dividend for those who want to participate in it. NZD 7.12 net tangible asset backing per share, up 11% from NZD 6.44. Understanding that between June 2025 and June 2026, we have the normal cycle of revaluations at the end of the year.

Speaker #1: Our targeted range is between 1.5 to 2.5 times, and we're now at 1.22. Earnings per share and dividends: EPS at $7, as previously mentioned, up from 90 cents.

Speaker #1: Dividends paid out in the last 12 months were $0.50. We have announced an interim dividend of $0.20 per share, to be paid on the 15th of October.

Speaker #1: It is fully imputed, and the dividend reinvestment plan will apply to that dividend for those who want to participate in it. Net tangible asset backing per share is $7.12, up 11% from $6.44.

Speaker #1: Understanding that between June 2025 and June 2026, we have the normal cycle of revaluations at the end of the year. We've got the asset revaluation in Australia, plus our normal capital expenditure program.

Michael Franks: We've got the asset revaluation in Australia, plus our normal capital expenditure program. That increase from NZD 6.44 to NZD 7.12 reflects all of those factors. Our guidance, as I outlined at the beginning, is creeping up like it did last year to between NZD 39 million and NZD 43 million. It's increased from NZD 38 million to NZD 42 million. Understanding that last year, with a record crop and exceptional growing season and keeping season, our profit before tax was NZD 47.5 million. So we are forecasting to be below that for the full year this year. Still, a very strong performance and would be our second highest profit in the company's history. In terms of the segments, running through each of the businesses that we're operating. In terms of our orcharding business, where we are growing kiwifruit, avocados, kiwiberry in New Zealand, led by Barry Penellum.

Speaker #1: And so that increase from $6.44 to $7.12 reflects all of those factors. Our guidance, as I outlined at the beginning, is creeping up like it did last year to between 39 and 43 million.

Speaker #1: It's increased from 38 to 42. But understanding that last year, with a record crop and an exceptional growing season and keeping season, our profit before tax was $47.5 million.

Speaker #1: So, we are forecasting to be below that for the full year this year, but still a very strong performance and it would be our second highest profit in the company's history.

Speaker #1: In terms of the segments running through each of the businesses that we're operating, in terms of our orchard business, where we are growing kiwifruit, avocados, and kiwiberry in New Zealand, led by Barry Penellum.

Speaker #1: Revenue of $63.6 million is down 8% on the previous corresponding period. We are a large Hayward grower, and the Hayward volumes are down.

Michael Franks: Revenue of NZD 63.6 million is down 8% on the previous corresponding period. We are a large Hayward grower and the Hayward volumes are down. EBITDA, earnings before interest, tax, depreciation, and amortization, down 16% at NZD 8.11 million. At this point, we're using the mid-range of Zespri's forecast in terms of our orchard gate returns and getting to that forecast. Understandably a little bit off. We are a large Hayward grower, and so they are a little bit less than last year. EBIT, NZD 6.3 million, down 20%. You can see the yields are down in key varieties. Last year was a peak year in terms of high yields. SunGold down 7%, Hayward down 18%, and it just follows such a strong year the year before.

Speaker #1: EBITDA—earnings before interest, tax, depreciation, and amortization—was down 16% at $8.11 million. At this point, we're using the mid-range of Zespri's forecast in terms of our Orchard Gate returns and getting to that forecast.

Speaker #1: And so, understandably, a little bit off. We are a large Hayward grower, and so they are a little bit less than last year. EBIT $6.3 million, down 20%.

Speaker #1: You can see the yields are down in key varieties. Last year was a peak year in terms of high yields, so SunGold is down 7%.

Speaker #1: Hayward down 18%. And it just follows such a strong year the year before. And reminding you that we have got 70 hectares of kiwifruit production and development, and we're at Corkery.

Michael Franks: Reminding you that we have got 70 hectares of kiwifruit production in development in Rakurakau, in conjunction with local iwi and Kāinga, and that will progressively come into production over time. At this point in time, it is all Hayward. Post-harvest operations, which handles the packing, cool storage, shipping of kiwifruit, and all of the other varieties that we're handling. Avocados, citrus, persimmons, and kiwiberry, led by Paul Crone. NZD 206.6 million in revenue is up 1%. EBITDA, NZD 83.2 million is up 6% on the previous corresponding period, and EBIT at NZD 73.3 million, up 7%. This is the engine room where we actually earn our money. Pleasingly, we have been able to drive automation efficiencies. Our strategy is to have a network of highly automated pack houses adjacent to where the fruit is grown. We have taken steps to achieve that.

Speaker #1: And in conjunction with local iwi and Karuna, and that will progressively come into production over time. At this point in time, it is all Hayward.

Speaker #1: Post-harvest operations really handle the packing, cold storage, and shipping of kiwifruit, as well as all of the other varieties that we're handling: avocados, citrus, persimmons, and kiwi berry.

Speaker #1: Led by Paul Crone, $206.6 million in revenues, up 1%. EBITDA of $83.2 million, up 6% on the previous corresponding period. And EBIT at $73.3 million, up 7%.

Speaker #1: This is the engine room where we actually earn our money. And, pleasingly, we have been able to drive automation efficiencies. Our strategy is to have a network of highly automated packhouses adjacent to where the fruit is growing.

Speaker #1: We've taken steps to achieve that in Northland. We are doing more now and thinking about it. But you can see that at $450.4 million of assets, this is the bulk of where our investment is.

Michael Franks: In Northland, we are doing more now and thinking about it. You can see at NZD 450.4 million of assets, this is the bulk of where our investment is, at 66% of our assets is in this division. SeekaFresh, our retail services business, where we are connecting produce through to customers, and fruit that we don't supply through to Zespri. It's led by Kate Bryant. Revenue of NZD 12.7 million, up 13% on the previous corresponding period. We've got momentum in this part of our business. EBITDA at NZD 2 million is up 28%, NZD 1.4 million is up 39%, albeit on a lower starting number. We are continuing to grow in a challenging market. Economic environment in New Zealand is a little bit difficult for the population. We're in the middle in running a supply chain business and marketing business.

Speaker #1: It's 66% of our assets in this division. Seeka Q1, our retail services business, is really where we are connecting produce through to customers, and fruit that we don't supply through to Zespri.

Speaker #1: It's led by Kate Bryant. Revenue of $12.7 million is up 13% on the previous corresponding period. We've got momentum in this part of our business.

Speaker #1: EBITDA at $2 million is up 28%. $1.4 million is up 39%, but all on a low-end starting number. We are continuing to grow in a challenging market. The economic environment in New Zealand is a little bit difficult for the population.

Speaker #1: And so, we're in the middle, really running a supply chain business and marketing business. And so, it's pleasing to see that we've got growth in that part of our business.

Michael Franks: And so it is pleasing to see that we have got growth in that part of our business, and we continue to push. We have got momentum and new categories coming into our markets. Of course, we have got LUVO, the avocado oil production and marketing business nestled into this business unit. That part is led by Jim Smith. We launched it in 2025. We have been patiently building that business. Marketing team has done a great job, and pleasingly, since we wrote they are starting to achieve market momentum, we have actually got access to First Choice and Woolworths, alongside the independents that we have been supplying with this new product, including the Bin Inn. So, we have to wait for category reviews. We have to wait for the opportunity to sell. We have to wait for the market to demand our product.

Speaker #1: And we continue to push. We've got momentum and new categories coming into our markets. Of course, we've got Luvo, the avocado oil production and marketing.

Speaker #1: Business nestled into this business unit. That part is led by Jim Smith. We launched it in 2025. We have been patiently building that business. The marketing team's done a great job.

Speaker #1: And pleasingly, since we've actually started to achieve market momentum, we've actually got access to First Choice and Woolworths alongside the independents that we have been supplying with this new product, including the Benin.

Speaker #1: So we have to wait for category reviews. We have to wait for the opportunity to sell. We have to wait for the market to want, to demand our product. The team's done a great job in online marketing, doing promotions to get the market pull-through.

Michael Franks: Team has done a great job in online marketing, doing promotions to get the market pull-through. If we are patient, this will be very successful. I am very pleased with how it is going so far. In terms of our Australian business, fully integrated business in Australia, led by Jonathan van Popering. Very adequately managed and done a great job over there, really. Growing, packing, retailing kiwifruit and other produce in that market, in a very challenging growing season. NZD 22.2 million in revenue really belies the category mix that we have been running over there. I think we are having to learn to continually adapt in that market. It was very hot. We probably hung a bit more fruit there than we probably would want to do in a normal case. We have reset ourselves. We are changing varieties into that environment. We have got new kiwifruit varieties coming.

Speaker #1: And if we are patient, this will be very successful, and we are very pleased with how it's going so far. In terms of Australian business, it's a fully integrated business in Australia led by John Van Popering—very adequately managed, and he's done a great job over there, really.

Speaker #1: Growing, packing, retailing kiwifruit and other produce in that market. It's been a very challenging growing season. $22.2 million in revenue really belies the category mix that we've been running over there.

Speaker #1: And I think we’re having to learn to continually adapt in that market. It was very hot, and we probably hung a bit more fruit there than we would normally want to in a typical case.

Speaker #1: We've reset ourselves. We're changing varieties into that environment. We've got new kiwifruit varieties coming. Our EBITDA at $4.5 million is down 29%.

Michael Franks: Our EBITDA at NZD 4.5 million is down 29%. Our EBIT at NZD 2.9 million is down 40%. Reasonably still very positive about that market, although we are heading into El Niño. We are preparing ourselves. Water supply up there is very good. I have been in Australia a few weeks ago, and actually was delighted with the canopy that we are tying down, particularly in our kiwifruit business over there. So, it has just been a harder year in that part of our business. From time to time that will happen in our business. In terms of our forward focus. Well, we remain focused on delivering exceptional operational excellence and excellent financial results. We are driven to deliver good returns for our shareholders and stakeholders, and excellent service to our growers, and excellent returns to our growers. We are pushing to further automate, deliver more efficiency gains, and return the money from our investment.

Speaker #1: Our EBIT at $2.9 million is down 40%. We're still reasonably positive about that market, although we're heading into El Niño. We're preparing ourselves.

Speaker #1: Water supply is very good. I was in Australia a few weeks ago and actually was delighted with the canopy that we're tying down, particularly in our kiwifruit business over there.

Speaker #1: So it's just been a harder year in that part of our business, and from time to time, that will happen in our business. In terms of our forward focus, well, we remain focused on delivering exceptional operational excellence.

Speaker #1: And excellent financial results. We are driven to deliver good returns for our shareholders and stakeholders, and excellent service to our growers, and excellent returns to our growers.

Speaker #1: We are pushing to further automate, to deliver more efficiency gains and return the money from our investment. We are completing the Hocker Pack machine to make it fully automated, so it is the same as what we've done in Keti Keti.

Michael Franks: We are pushing to further automate, deliver more efficiency gains, and return the money from our investment. We are completing the Huka Pak machine to make it fully automated, so it is the same as what we have done in Kerikeri. That machine in Kerikeri has been the most efficient machine in the fleet, which is quite remarkable in its first year of service. Because normally, it will take you a year or two to actually learn the technology, learn what you have got, learn how to drive it, and learn how to optimize it. So, there is more to come. We continue to be focused on forward capacity planning. There is more risk in our business of being under capacity, to having more demand than what we have actually got capacity to handle. So in a disciplined way, we are looking forward, thinking about what happens next.

Michael Franks: We are completing the Huka Pak machine to make it fully automated, so it is the same as what we have done in Kerikeri. That machine in Kerikeri has been the most efficient machine in the fleet, which is quite remarkable in its first year of service. Because normally, it will take you a year or two to actually learn the technology, learn what you have got, learn how to drive it, and learn how to optimize it. So, there is more to come. We continue to be focused on forward capacity planning. There is more risk in our business of being under capacity, to having more demand than what we have actually got capacity to handle. So in a disciplined way, we are looking forward, thinking about what happens next. Volumes are forecast to go up. What does that mean for us?

Speaker #1: That machine in Keti Keti has been the most efficient machine in the fleet, which is quite remarkable in its first year of service, because normally it will take you a year or two to actually learn the technology, learn what you've got, learn how to drive it, and learn how to optimize it.

Speaker #1: So there is more to come. We continue to be focused on forward capacity planning. There is more risk in our business of being under-capacity—of having more demand than what we actually have the capacity to handle.

Speaker #1: So, in a disciplined way, we're looking forward, thinking about what happens next. Volumes are forecast to go up. What does that mean for us?

Michael Franks: Volumes are forecast to go up. What does that mean for us? Is there things that we could be doing that will earn the required rate of return for our shareholders, take into account the risk profile that we might have to apply to that? It has been a game changer introducing Raymoon to the business and into the industry. How do we further exploit that technology that we have brought, and the efficiencies it has delivered? That is underway, and we are thinking about that, and thinking about how sensibly we can do that. Our board is thinking about growth. How do we profitably continue to grow the business? How do we actually earn more and be bigger? The two things together, not to be bigger at the expense of earnings, but to actually grow our earnings and to be bigger.

Speaker #1: Are there things that we could be doing that will earn the required rate of return for our shareholders, taking into account the risk profile that we might have to apply to that?

Michael Franks: Is there things that we could be doing that will earn the required rate of return for our shareholders, take into account the risk profile that we might have to apply to that? It has been a game changer introducing Raymoon to the business and into the industry. How do we further exploit that technology that we have brought, and the efficiencies it has delivered? That is underway, and we are thinking about that, and thinking about how sensibly we can do that. Our board is thinking about growth. How do we profitably continue to grow the business? How do we actually earn more and be bigger? The two things together, not to be bigger at the expense of earnings, but to actually grow our earnings and to be bigger. We have looked at opportunities at growth. We have looked at all sorts of opportunities around.

Speaker #1: And it's been a game changer introducing Remin to the business and into the industry. So how do we further exploit that technology that we've brought in and the efficiencies it's delivered?

Speaker #1: So that is underway, and we are thinking about that, and thinking about how sensitively we can do that. Our Board is thinking about growth.

Speaker #1: How do we profitably continue to grow the business? How do we actually earn more and become bigger? The two things together—not to be bigger at the expense of earnings, but to actually grow our earnings and to be bigger.

Speaker #1: And we have looked at opportunities for growth. We have looked at all sorts of opportunities around. We haven't found anything that we have thought was sensible to pursue.

Michael Franks: We have looked at opportunities at growth. We have looked at all sorts of opportunities around. We have not found anything that we have thought was sensible to pursue. We kicked a few cans down the road, as you might expect us to. Very much so that the growth component is on the agenda. But we have not found anything worthwhile pursuing. I would make the point to you, we never get the credit for the bad deals we do not do. We will just patiently wait and see if there are opportunities in the market for us to pursue to the benefit of our shareholders. Looking forward slightly more. After a reasonably warm and mild start to winter, actually the end has come with a blast, and we have had good late winter chill. We are just in the final stages of Hi-Cane application across the orchards.

Michael Franks: We have not found anything that we have thought was sensible to pursue. We kicked a few cans down the road, as you might expect us to. Very much so that the growth component is on the agenda. But we have not found anything worthwhile pursuing. I would make the point to you, we never get the credit for the bad deals we do not do. We will just patiently wait and see if there are opportunities in the market for us to pursue to the benefit of our shareholders. Looking forward slightly more. After a reasonably warm and mild start to winter, actually the end has come with a blast, and we have had good late winter chill. We are just in the final stages of Hi-Cane application across the orchards. Reasonably pleased with what we are seeing there, and pretty happy with the chilly hours that we have got.

Speaker #1: But we kicked a few cans down the road, as you might expect us to. And so, very much so, that the growth component is on the agenda, but we haven't found anything worthwhile pursuing.

Speaker #1: And I'd make the point to you: we never get the credit for the bad deals we don't do. So, we'll just patiently wait and see if there are opportunities in the market for us to pursue to the benefit of our shareholders.

Speaker #1: Looking forward slightly more, after a reasonably warm and mild start to winter, actually the end has come with a blast, and we've had good late winter chill.

Speaker #1: We're just in the final stages of Hurricane application across the orchards. Reasonably pleased with what we're seeing there, and pretty happy with the chill hours that we've got.

Michael Franks: Reasonably pleased with what we are seeing there, and pretty happy with the chilly hours that we have got. That does not mean we have got a great crop for next year. It is just one of the components that is useful to have to deliver a great crop in next year. Understanding that we are heading to El Niño. That can mean good things and bad things. In previous years, it actually meant good things. We will see how we go as we pursue the season, and we go through the growing season. Of course, we remain focused on sustainability. It is important. We have got a carbon footprint reduction plan in place. We are pursuing that sensibly. We are continuing to retrofit cold store refrigeration systems. We have got a program maintenance System running in the company.

Speaker #1: So that doesn't mean we've got a great crop for next year. It's just one of the components that is useful to have to deliver a great crop in next year.

Michael Franks: That does not mean we have got a great crop for next year. It is just one of the components that is useful to have to deliver a great crop in next year. Understanding that we are heading to El Niño. That can mean good things and bad things. In previous years, it actually meant good things. We will see how we go as we pursue the season, and we go through the growing season. Of course, we remain focused on sustainability. It is important. We have got a carbon footprint reduction plan in place. We are pursuing that sensibly. We are continuing to retrofit cold store refrigeration systems. We have got a program maintenance System running in the company. We are going through and reviewing switchboards and plant rooms continually, and we have got a program of renewing them.

Speaker #1: Understanding that we're heading into El Niño—that can mean good things and bad things. In previous years, that actually meant good things, and so we'll see how we go as we progress through the season and through the growing period.

Speaker #1: And of course, we remain focused on sustainability. It is important. We have a carbon footprint reduction plan in place, and we are pursuing that sensibly.

Speaker #1: We are continuing to retrofit coastal refrigeration systems. We have got a program maintenance system running in the company, and we are going through and reviewing switchboards and plant rooms continually.

Michael Franks: We are going through and reviewing switchboards and plant rooms continually, and we have got a program of renewing them. As we renew those, we actually are switching out harmful refrigerant gases for more environmentally friendly hybrids and synthetics, so that we do not damage the environment should they leak. We have got ongoing solar installations underway. Perhaps now smaller installations being contemplated. In the case of our Huka Pak packhouse, that installation will be financed by the landlord. Pretty much running our way through to the end. Of course, we are still busy, still packing avocados. We are still packing citrus. We are still busy in the orchards. We have got our SeekaFresh markets operating nearly every day. There is a lot happening.

Speaker #1: And we've got a program of renewing them. And as we renew those, we actually are switching out harmful refrigerant gases for more environmentally friendly hybrids and synthetics.

Michael Franks: As we renew those, we actually are switching out harmful refrigerant gases for more environmentally friendly hybrids and synthetics, so that we do not damage the environment should they leak. We have got ongoing solar installations underway. Perhaps now smaller installations being contemplated. In the case of our Huka Pak packhouse, that installation will be financed by the landlord. Pretty much running our way through to the end. Of course, we are still busy, still packing avocados. We are still packing citrus. We are still busy in the orchards. We have got our SeekaFresh markets operating nearly every day. There is a lot happening. There is a whole lot happening right across the business. But these are the key things that we are focusing on as we push forward. If I just push through to a couple more slides so you can see in the appendices. We have put some new appendices in.

Speaker #1: So that we don't damage the environment should they leak. And we've got ongoing solar installations underway, perhaps now smaller installations being contemplated. In the case of our Peninsula packhouse, that installation will be financed by the landlord.

Speaker #1: So, pretty much running our way through to the end. Of course, we are still busy—still packing avocados, we're still packing citrus, we're still busy in the orchards.

Speaker #1: We've got our Seeka Fresh markets operating nearly every day. There's a lot happening. There's a lot happening right across the business, but these are the key things that we're focusing on as we push forward.

Michael Franks: There is a whole lot happening right across the business. But these are the key things that we are focusing on as we push forward. If I just push through to a couple more slides so you can see in the appendices. We have put some new appendices in. Not that one. That is just a breakdown, the EBITDA, for those who are interested in looking at it and cannot sleep at night. We have put this key metrics page in, which is really just talking about historical numbers to lay it out for the analysts in a way that you might understand more about the key metrics behind the business as you might try and interpret what is going on and what it might mean for the future. We have really enjoyed the interaction we have had with the analysts who are initiating coverage on the business.

Speaker #1: If I just push through to a couple more slides, you can see in the appendices—we've put some new appendices in. Not that one.

Michael Franks: Not that one. That is just a breakdown, the EBITDA, for those who are interested in looking at it and cannot sleep at night. We have put this key metrics page in, which is really just talking about historical numbers to lay it out for the analysts in a way that you might understand more about the key metrics behind the business as you might try and interpret what is going on and what it might mean for the future. We have really enjoyed the interaction we have had with the analysts who are initiating coverage on the business. Because it has also given us an insight how we might better present ourselves, so you can understand more about what is going on in your business. That being the case, there are key contacts there in case you want to talk to us afterwards. There will probably be some questions because Nicola Neilson is looking at me sideways.

Speaker #1: That's just a breakdown of EBITDA for those who are interested in looking at it and can't sleep at night. We've put this key metrics page in.

Speaker #1: Which is really just talking about historical numbers, to lay it out for the analysts in a way that you might understand more about the key metrics behind the business as you try and interpret what's going on and what it might mean for the future.

Speaker #1: We've really enjoyed the interaction we've had with the analysts who are initiating coverage on the business, because it's also given us insight into how we might better present ourselves so you can understand more about what's going on in your business.

Michael Franks: Because it has also given us an insight how we might better present ourselves, so you can understand more about what is going on in your business. That being the case, there are key contacts there in case you want to talk to us afterwards. There will probably be some questions because Nicola Neilson is looking at me sideways. Happy to take any questions now that you might have.

Speaker #1: So, that being the case, there are key contacts there in case you want to talk to us afterwards. There'll probably be some questions because Nick is looking at me sideways.

Speaker #1: And so I'm happy to take any questions now that you might have. Okay, the first question from Peter Truman: Are there reduced airborne citrus-packed volumes at half year—just timing?

Michael Franks: Happy to take any questions now that you might have.

Nicola Neilson: Okay. The first question from Peter Truman. Are the reduced avo and citrus packed volumes at H1 just timing? How do you expect full year volumes to compare to 2025?

Speaker #1: And how do you expect fully aired volumes to compare to 2025?

Speaker #2: I'll break both of those down for you. So, in the case of avocados, funnily enough, last year was a little bit of an off-season.

Michael Franks: I will break both of those down for you. In the case of avocados, funnily enough, last year was a little bit of an off season. This year we are expecting to pack more. We will have an export pack out at around 500,000 trays and perhaps total volume around 700,000 trays are the numbers that are in my head. Australia is having an off year, in terms of its production of avocados, which means that we have got a fantastic opportunity for New Zealand avocados to make good money for the processors and for the growers because we are anticipating a strong market over there. Market returns last year to a grower was around NZD 11.89. This year, we are predicting better than NZD 20. So that is good. Volumes should be up. We are reasonably happy with that.

Speaker #2: This year, we are expecting to pack more. We will have an export pack-out at around 500,000 trays, and perhaps total volume around 700,000 trays—those are the numbers that are in my head.

Speaker #2: Australia is having an off year in terms of its production of avocados, which means that we've got a fantastic opportunity for New Zealand avocados to make good money for the processors.

Speaker #2: And for the growers, because we're anticipating a strong market over there, micro returns last year to a grower was around $11.89. This year, with the reduction, better than $20.

Speaker #2: So that is good. Volumes should be up. We’re reasonably happy with that. In the case of the citrus business—and, I’m sorry, avocados—deliberately in the first half of the year, not much volume.

Michael Franks: In the case of the citrus business, I am sorry, avocados, deliberately in the H1 of the year, not much volume. We actually accelerated last year's harvest to get it out of the way before Christmas. It is a way for us and for the growers to make more money. Most of the avocados are being harvested. The harvest starts in July and runs through to sometime next February. Because it is a stronger market, we will spread that harvest out a little bit. In terms of citrus, there is some structural change happening in the citrus industry in New Zealand. Seeka is benefiting from that structural change. There is a volume increase coming through to our business, as growers are changing alliances, changing their handler and marketer.

Speaker #2: We actually accelerated last year's harvest to get it out of the way before Christmas. It's a way for us, and for the growers, to make more money.

Speaker #2: So most of the avocados are being harvested. The harvest starts in July and runs through to sometime next February. And, because it's a stronger market, we will spread that harvest out a little bit.

Speaker #2: In terms of citrus, there is some structural change happening in the citrus industry in New Zealand, and Seeka is benefiting from that structural change.

Speaker #2: So there is a volume increase coming through to our business, as growers are changing alliances, changing their handler and marketer. And so, with some certainty, I can tell you that we have picked up bigger volumes in citrus, particularly in the Gisborne region.

Michael Franks: With some certainty, I can tell you that we have picked up bigger volumes in citrus, particularly in the Gisborne region.

Nicola Neilson: Second question from Peter Truman. The full year forecast for 2026 is predicting a weaker H2 than 2025. Can you talk to the main reason for this?

Speaker #1: Second question from Peter: The full-year forecast for 2026 predicts a weaker second half compared to 2025. Can you talk to the main reason for this?

Speaker #2: Yep. So, there's some seasonality in our earnings. And one of the things that will impact how much we make in the second half is how full our coastals are at the 30th of June.

Michael Franks: Yep. There is some seasonality in our earnings, and one of the things that will impact how much we make in the H2 is how full our cool stores are at 30 June. Last year, at the end of 30 June, we were completely full. As we load fruit out, we make more cool store income. This year, because the volumes are down, we do not have so much fruit in store to load out to earn cool store income on. That is simply the answer. We do not have the volume to actually process in the H2 of the year that we did last.

Speaker #2: And last year at the end of the 30th of June, we were completely full. So as we load fruit out, we make more coastal income.

Speaker #2: This year, because the volumes are down, we don't have so much fruit in store to load out to earn coastal income on. And so, that's simply the answer.

Speaker #2: We don't have the volume to actually process in the second half of the year that we did last year.

Nicola Neilson: Third question from Peter. He would just like you to talk to the decision to offer the DRP on dividends when net debt is tracking favorably.

Speaker #1: Third question from Peter. He’d just like you to talk to the decision to offer the DRP on dividends when net debt is tracking favorably.

Speaker #2: Well, the answer is, when do you have enough resilience, and when are your financial ratios good enough that you don't have to offer the discount or offer the DRP?

Michael Franks: Well, the answer is that, when do you have enough resilience? When is your financial ratios good enough that you do not have to offer the discount or offer the DRP? Of course, in our case, coming from a period where we had such high debt, we are driven to lower debt. We have opportunities in front of us that we believe we can invest in and make growers. Oh, sorry, growers. Make shareholders better returns. So at the moment, we are still driven to lower debt a bit more so that we have got the financial freedom of action to make investments for the benefit of everyone.

Speaker #2: And of course, in our case, coming from a period where we had such high debt, we are driven to lower debt. And we've got opportunities in front of us that we believe we can invest in and make shareholders better returns. I'm sorry—growers—make shareholders better returns.

Speaker #2: And so, at the moment, we are still driven to lower debt a bit more, so that we've got the financial freedom of action to make investments for the benefit of everyone.

Nicola Neilson: A question from David Harris. Automation appears to have driven meaningful uplift in margins. Are these repeatable going forward, or are they a one-off benefits in 2026?

Speaker #1: Question from David Harris: Automation appears to have driven meaningful uplift in margins. Are these repeatable going forward, or are there one-off benefits in 2026?

Michael Franks: Well, they are repeatable, going forward. Given that we have made an investment and we have actually got those machines delivering at a much better performance than the others, in fact, the highest actually in the fleet. There are more investments that we can make. There is more automation that we can deploy. It is not just about packing machines, it is also about how you get boxes under machines and get product away from machines. But the technology we deployed in Raymoon has actually startled us because factually, before they met us, they did not have that technology. We took a risk with them, and actually it has delivered much better than we expected. So there is more opportunities now for us, in an imaginative way, to actually deploy more technology into our business and further improve the margins.

Speaker #2: Well, they are repeatable. Going forward, given that we've made an investment, we've actually got those machines delivering at a much better performance than the others.

Speaker #2: In fact, the highest and actually in the fleet. There are more investments that we can make. There is more automation that we can deploy.

Speaker #2: It's not just about packing machines. It's also about how you get boxes under machines and get product away from machines. But the technology we've redeployed and remote is actually startled us, because factually, before they met us, they didn't have that technology.

Speaker #2: We took a risk with them, and she has delivered much better than we expected. So there are more opportunities now for us, and an imaginative way to actually deploy more technology into our business and further improve the margins.

Speaker #2: And that's really important to us because the volumes look like they're going to continue to go up. Labor is a scarce and expensive resource.

Michael Franks: That is really important to us because the volumes look like they are going to continue to go up. Labor is a scarce and expensive resource, so if we can actually handle more with less labor input, we are going to make more money.

Speaker #2: So, if we can actually handle more with less labor input, we're going to make more money.

Speaker #1: A question from Bill: Are you expecting to require significant new facilities, or any greenfield investment?

Nicola Neilson: A question from Bill. Are you expecting to require significant new facilities or any greenfield investment?

Michael Franks: The answer is not in the short term. We are always kicking the can down the road in terms of our capacity planning about what we should do next, whether we should do a greenfields or not do a greenfields. No business case has gone anywhere near the board yet, but we are always kicking that can down the road to say, "Look, is it sensible for us to build something and actually decommission something?" We are always thinking about ways to do that. At the moment, a number of our cool stores are leased, and some of them are quite expensive. So we would be better off to build something and actually exit some of those expensive leases and cool stores. So we are always looking at opportunities, but at the moment, we have got nothing that we are actually chasing.

Speaker #2: The answer is not in the short term. We are always kicking the can down the road in terms of our capacity planning about what we should do next.

Speaker #2: Whether we should do a greenfield or not do a greenfield—no business case has gone anywhere near the board yet. But we're always kicking that can down the road to say, look, is it sensible for us to build something and actually decommission something?

Speaker #2: We're always thinking about ways to do that. At the moment, a number of our coastals are leased, and some of them are quite expensive.

Speaker #2: And so, we would be better off to build something and actually exit some of those expensive leases and coastals. So we're always looking at opportunities.

Speaker #2: But at the moment, we've got nothing that we're actually chasing.

Speaker #1: A second part to that question: how do you assess any major capital investment in terms of the return that you require? And would it be serviced through operating cash flow or debt?

Nicola Neilson: A second part to that question. How do you assess any major capital investment in terms of the return that you require? Would it be serviced through operating cash flow or debt?

Michael Franks: As you would expect us to, we understand that we are stewarding public money, not money that is our own. So it has a higher threshold for us to actually achieve in terms of doing any major capital expenditure. Business cases have to be brought forward to the board. We have to make sure that it makes a sufficient rate of return, noting the risk. A risk-adjusted rate of return might be a better way to put that, so that we know that any investment that we are making is accretive to our earnings, really is the best way to describe that. And understanding that in our industry, we are the only one that is stewarding public money that way. So we have got to be very careful and innovative how we actually do it.

Speaker #2: So, as you would expect, we understand that we are stewarding public money, not money that's our own. So it has a higher threshold for us to actually achieve, in terms of doing any major capital expenditure.

Speaker #2: Business cases have to be brought forward to the board. We have to make sure that it makes a sufficient rate of return. Noting the risk, a risk-adjusted rate of return might be a better way to put that.

Speaker #2: So that we know that any investment that we're making is accretive to our earnings really is the best way to describe that.

Speaker #2: And understanding that in our industry, we're the only one that is stewarding public money that way. So we're going to be very careful and innovative in how we actually do it.

Speaker #1: Question from Gordon Sims on Ruby Red. With the increasing production, does the harvest window clash with gold, or does it help to spread into the shoulder season?

Nicola Neilson: Question from Gordon Sims on Zespri RubyRed. With the increasing production, does the harvest window clash with Gold, or does it help to spread into the shoulder season?

Speaker #2: Well, when Ruby Red was first released, it was on the basis that it came into maturity before SunGold, and so therefore it was complementary.

Michael Franks: Well, when Zespri RubyRed was first released, it was released on the basis that it came into maturity before SunGold, and so therefore was complementary. You could get going earlier, handle the Red, and then go into SunGold. The reality is actually it is not. It is actually butting up with SunGold and overlapping a little bit. In our case, actually, we can get away with it because we have got 17 or 18 machines in the fleet. And so we can actually set a machine to run to Red or set two machines to run to Red while we have got everything else running SunGold. And so we can juggle our capacity to make it work. So it has not been a problem to date, but it is something we are conscious of. And Red is a much more challenging and tricky product to handle.

Speaker #2: You could get going earlier, handle the red, and then go into SunGold. The reality is actually it's not—it's actually butting up with SunGold and overlapping a little bit.

Speaker #2: In our case, actually, we can get away with it because we've got 17 grading machines in the fleet. And so we can actually set a machine to run for red, or set two machines to run to red, while we've got everything else running SunGold.

Speaker #2: And so we can juggle our capacity to make it work. So it hasn't been a problem to date, but it is something we're conscious of.

Speaker #2: And red is a much more challenging and tricky product to handle. You've got very short shipping times. You've got to, or you've got to rework it.

Michael Franks: You got very short shipping times or you got to rework it. It is a product that does not want to be reworked. So we are going to be very careful and very disciplined in how we set our capacity up to handle it.

Speaker #2: It doesn't want to be. It's a product that doesn't want to be reworked. And so we're going to be very careful and very disciplined in how we set our capacity up to handle it.

Speaker #1: A second question from Gordon: can you give any idea of the quantum of third-party storage used to provide cold storage this year?

Nicola Neilson: A second question from Gordon. Can you give any idea of the quantum of the third party used to provide cold storage too this year?

Speaker #2: Around the amount that we've rented out?

Michael Franks: The amount that we rented out?

Speaker #1: That's correct.

Nicola Neilson: Correct.

Speaker #2: So this year we rented out, I think, the number will be in this range: 650,000 to 750,000 static trays' worth of cold storage.

Michael Franks: This year we rented out, I think, the number will be in this range, 650,000 to 750,000 static trays worth of cool storage. It is one of those two numbers. Yeah.

Speaker #2: It's either one of those two numbers, yeah.

Speaker #1: A question from Tony: Congratulations on a great result. Is there any interest in the Solpats horticulture assets in Australia?

Nicola Neilson: A question from Tony. Congratulations on a great result. Is there any interest in the Solpats horticulture assets in Australia?

Speaker #2: Well, is there any interest in it? I don't think I'll be breaching confidentiality to say that I signed a confidentiality agreement and took a look at it.

Michael Franks: Well, is there any interest in it? I do not think I would be breaching confidentiality to say that I signed a confidentiality agreement and took a look at it. Those assets over there come at some risk. And given that we are stewarding public money, it does not make sense for us to actually deploy in that direction. There are some challenges in growing, in particular, the kiwifruit over in Western Australia, Manjimup, which I am familiar in taking a look at. But at the moment, I think our focus is here in New Zealand, rather than looking at those assets. Redland, of course, also have citrus and apples adjacent to where we are in Shepparton. But at this point in time, we are not in the play.

Speaker #2: Those assets over there come with some risk, and given that we're stewarding public money, it doesn't make sense for us to actually deploy in that direction.

Speaker #2: There are some challenges in growing, in particular the Kiwi Fruit over in Western Australia, Manchimap, which we are familiar with and taking a look at. But at the moment, I think our focus is here in New Zealand rather than looking at those assets.

Speaker #2: Redlands, of course, also has citrus and apples, and is adjacent to where we are in Shepparton. But at this point in time, we're not in the play.

Speaker #1: A question from David Harris: So, given we're issuing shares through the DRP and a proposed grower loyalty share scheme, how do we think about using balance sheet capacity to buy back shares as an alternative?

Nicola Neilson: A question from David Harris. Given we are issuing shares through the DRP and a proposed grower loyalty share scheme, how do we think about using balance sheet capacity to buy back shares as an alternative?

Speaker #2: So, in the case of the grower share scheme—if I might start there—we've sort of got ourselves caught there a little bit, because what we wanted to do was completely cleanse the company of everything that we might be thinking of doing.

Michael Franks: In the case of the grower share scheme, if I might start there. We sort of got ourselves caught there a little bit because what we wanted to do was completely cleanse the company of everything that we might be thinking of doing, so that officers and directors could trade and not be in blackout. Effectively what we have done is indicated to the market that the board is intending to do this. It has not yet considered it, and if it does want to do it is going to go and seek shareholder approval to do it, as we did last time. In the case of the grower share scheme, there is some benefit to us because it actually shores up, and gives us security of volume.

Speaker #2: So that officers and directors could trade and not be in blackout. So, effectively, what we've done is indicate to the market that the board is intending to do this.

Speaker #2: It hasn't yet considered it. And if it does want to do it, it's going to go and get shareholder approval to do it, as we did last time.

Speaker #2: In the case of the grower share scheme, there is some benefit to us because it actually shores up and gives us security of volume.

Speaker #2: So, we've got security of earnings, and earnings have been the issue for the company going back in time, rather than asset backing, if you can understand the difference.

Michael Franks: We have got security of earnings, and earnings has been the issue for the company going back in time rather than asset backing, if you can understand the difference. And we are not issuing shares for free. Growers in the grower loyalty scheme have to buy those shares, have to pay cash for them, albeit in three years' time, less any dividends. But they pay the market price today, less any dividends in three years' time. That is how that works. We are not effectively deploying capital. What we are doing is agreeing to sell shares on a basis. In terms of the DRP, there is a 2% discount. All shareholders can participate in that. We are still driven at the moment to push more resilience and drive for more balance sheet resilience, which means lower debt. At the moment, the company is thinking that that is the right course of action.

Speaker #2: And we are not issuing shares for free. Growers in the Grower Loyalty Scheme have to buy those shares—have to pay cash for them, albeit in three years' time, less any dividends.

Speaker #2: But they pay the market price today, less any dividends in three years' time. That's how that works. So we're not effectively deploying capital; what we're doing is agreeing to sell shares on that basis.

Speaker #2: In terms of the DRP, there is a 2% discount. All shareholders can participate in that. We are still focused at the moment on pushing for more resilience and driving for more balance sheet strength, which means lower debt.

Speaker #2: So at the moment, the company is thinking that that is the right course of action. There is no shortage of things for us to invest in in the business that might be better than buying back shares.

Michael Franks: At the moment, the company is thinking that that is the right course of action. There is no shortage of things for us to invest in the business, that might be better than buying back shares. That is the approach we have taken for the moment.

Michael Franks: There is no shortage of things for us to invest in the business, that might be better than buying back shares. That is the approach we have taken for the moment.

Speaker #2: And so, that's the approach we're taking for the moment.

Speaker #1: A question from Conrad Young: With the particularly strong El Niño expected, is there an expectation that it is an elevated benefit or more of a risk?

Nicola Neilson: A question from Conrad Young. With the particularly strong El Niño expected, is there an expectation that it is an elevated benefit or more of a risk?

Speaker #2: Hi, Conrad. Nice to hear from you. The answer is that naturally we think emotionally, and we think that it's a risk to us because it's going to be dry.

Michael Franks: Hey, Conrad. Nice to hear from you. The answer is that we naturally think, and emotionally think that it is a risk to us because it is going to be dry. But actually, when we look back in time and look at what El Niños have done for us before, actually, we have got much better production in those years where we have had El Niño. We actually, seemingly, even though we have got an El Niño weather pattern, it rains once or twice in January or once or twice in February, and that is enough. And actually those years we have had El Niño, the performance has been stronger, not weaker. But there is always that inherent risk that it does not rain. So I guess that is the risk for us.

Speaker #2: But actually, when we look back in time and look at what El Niños have done for us before, we've actually had much better production in those years we've had El Niño.

Speaker #2: We actually, seemingly, even though we've got an El Niño weather pattern, it rains once or twice in January or once or twice in February.

Speaker #2: And that's enough. And actually, those years we've had El Niño, the performance has been stronger, not weaker. But there's always that inherent risk that it doesn't rain.

Speaker #2: So, I guess that's the risk for us.

Speaker #1: A second question from Conrad: Can you talk to the expected return on capital with the orchard co-investment with the iwi?

Nicola Neilson: A second question from Conrad. Can you talk to the expected return on capital with the orchard co-investment with the iwi?

Speaker #2: I don't have the exact number in my head, but I can say this: there's 70 hectares of Hayward and Kerriff orchards that are invested in up on the coast.

Michael Franks: I don't have the exact number in my head, but I can say this. There's 70 hectares of Hayward kiwifruit orchards that are invested in, up on the coast. We've got a packing right of 100% of that fruit through to 2053, maybe. So for a long time. We have invested money into that development, and I don't have the figure in front of me, but it's NZD 2 or NZD 3 million. But it is an investment we will get our money back as an investor in those developments alongside. It meets the required returns. It also gives us a benefit that we're actually utilizing capacity with the Hayward crop when we've actually got a lot of capacity late in the season. So it's very incremental to us in terms of our post-harvest business because effectively we're putting through more volume through our infrastructure.

Speaker #2: We've got a packing right of 100% of that fruit through to 2053, maybe, so for a long time. We have invested money into that development.

Speaker #2: And I don't have the figure in front of me, but it's two or three million dollars. But it is an investment—we will get our money back as an investor.

Speaker #2: In those developments, alongside, it meets the required returns. It also gives us a benefit that we're actually utilizing capacity with the Hayward crop when we've actually got a lot of capacity late in the season.

Speaker #2: So it's very incremental to us in terms of our post-harvest business, because effectively we're putting more volume through our infrastructure when we've actually got a lot of space for it.

Michael Franks: We've actually got a lot of space for it.

Speaker #1: A question from Graham Wallace-Ray: What is the return on invested capital benchmark you look at for future investments?

Nicola Neilson: A question from Graham Wallace-Ray. What is the return on invested capital benchmark you look at for future investments?

Speaker #2: Well, that depends on the nature of the investment itself. But generally, we're wanting to do better than 12. While it's theoretical, our WACC, our weighted average cost of capital, is somewhere around 9.3.

Michael Franks: Well, that depends on the nature of the investment itself. But generally, we're wanting to do better than 12%. While it's theoretical, our WACC, our weighted average cost of capital, is somewhere around 9.3%. We'd like it to be double digits. We're targeting 12% when we're looking at business cases. Last year, as a business on our return on capital employed is 14.5%. This year should still be better than 12%. But really, 12% is our benchmark we're looking for.

Speaker #2: We'd like it to be double digits. We're targeting 12, and we're looking at business cases. Last year, as a business, our return on capital employed was 14.5.

Speaker #2: This year should still be better than 12. So, but really, 12 is our benchmark we're looking for.

Speaker #1: Is the company considering a new employee share scheme alongside the similar one that was done in 2024?

Nicola Neilson: Is the company considering a new employee share scheme alongside the similar one that was done in 2024?

Speaker #2: We've yet to discuss that with our board, but we would intend to do another employee share scheme. Management would be intending to recommend to the board that we do.

Michael Franks: We've yet to discuss that with our board. But we would intend to do another employee share scheme. Management would be intending to recommend to the board that we do.

Speaker #1: A next question around post-harvest competition: we've previously talked about it as being quite aggressive, with some pricing pressure. Does that still exist?

Nicola Neilson: Next question around post-harvest competition. We've previously talked about it as being quite aggressive with some pricing pressure. Does that still exist?

Speaker #2: Yeah, the market for post-harvest is hot. There is more capacity going in, there's some irrational pricing, and so it is a bit hot out there at the moment.

Michael Franks: Yeah. The market for post-harvest is hot. There is more capacity going in. There's some irrational pricing. And so it is a bit hot out there at the moment. But in our case, we're competing on price, quality, and service. And I would add another one, and compliance. And so I think, we're not relaxed, but we're in the market, and so we're not losing great volumes, and we're not gaining great volumes. We're pretty stable.

Speaker #2: But in our case, we're competing on price, quality, and service. And I would add another one—in compliance. So I think we're not relaxed, but we're in the market.

Speaker #2: And so we're not losing great volumes, and we're not gaining great volumes. We're pretty stable.

Speaker #1: Another question from David Harris. Australia has seen a meaningful increase in assets over recent years, but earnings have remained relatively modest. What level of earnings are we aiming for in Australia?

Nicola Neilson: Another question from David Harris. Australia has seen a meaningful increase in assets over recent years, but earnings have remained relatively modest. What level of earnings are we aiming for in Australia, and are they capable of developing that through the new orchards?

Speaker #1: And are they capable of developing that through the new orchards?

Speaker #2: Yeah. So, there's 100 hectares of kiwifruit in production in Australia, and around 100 hectares in development. When you make an investment in an orcharding business, regardless of where it is on the planet, you've got to spend some money.

Michael Franks: Yeah. There's 100 hectares of kiwifruit in production in Australia and 100 hectares or thereabouts in development. When you're making an investment in an orcharding business, regardless of where it is on the planet, you've got to spend some money. You've got to get the plants in the ground, you've got to get the structures up, and you've then got to bring it through into production. In Australia, early on in our investment cycle of that journey that you go on, PSA hit us, and it knocked us around a little bit. Those plants, in terms of getting into production, have been delayed.

Speaker #2: You've got to get the plants in the ground. You've got to get the structures up. And you've then got to bring it through into production.

Speaker #2: In Australia, early on in our investment cycle of that journey that you go on, PSA hit us, and it knocked us around a little bit.

Speaker #2: And so, those plants, in terms of getting to production, have been delayed. At a critical moment, we innovated there and changed our crop protection program.

Michael Franks: At a critical moment, we innovated there and changed our crop protection program, and we were able to deploy sprays that are available to us in New Zealand that weren't available to us in Australia, and we were able to get those sprays in, and they have been a game changer. Those orchards are on track. I believe that we will get there. Year on year, we only get to do this once a year. We only get to grow one crop a year. That's the nature of what we do. Looking at it this year compared to last, it's much better. I've got confidence that we'll bring those orchards through as they should. Kiwifruit orcharding in Australia is a good business for us to be in.

Speaker #2: And we're able to deploy sprays that are available to us in New Zealand that weren't available to us in Australia, and we're able to get those sprays in.

Speaker #2: And they have been a game changer. And so those orchards are on track. I believe that we will get there. Year on year, we're going to get to do this once a year.

Speaker #2: We're going to get to grow one crop a year. That's the nature of what we do. Looking at it this year compared to last, it's much better.

Speaker #2: And so I've got confidence that we will bring those orchards through as they should. And orcharding, kiwifruit orcharding in Australia, is a good business for us to be in.

Speaker #1: And can you talk to the impact of fruit loss this year compared to last year?

Nicola Neilson: Can you talk to the impact of fruit loss this year compared to last year?

Speaker #2: So, last year was a remarkable year for low fruit loss. This year, more normal, but we're still actually pretty good. We are reworking a lot more fruit this year as Zespri tightens up the standards for quality, for offshore quality.

Michael Franks: Last year was a remarkable year for low fruit loss. This year, more normal, but we are still actually pretty good. We are reworking a lot more fruit this year as Zespri tightens up the standards for offshore quality. There is a lot more work going on in the business. We charge for that work. We make more margin. So actually, while it is a more normal year for fruit loss and higher than last, it is still very good and actually won't impact on our earnings too much.

Speaker #2: And so there's a lot more work going on in the business. We charge for that work. We make more margin. So actually, while it's a more normal year for fruit loss—and higher than last—it's still very good and actually won't impact on our earnings too much.

Speaker #1: A question from Bill. Investment funds are snapping up more of the existing orchards and land for new development. They seem to go to the packhouse that offers the best deal for packing.

Nicola Neilson: A question from Bill. Investment funds are snapping up more of the existing orchards and land for new development. They seem to go to the pack house who offers the best deal for packing. Are you actively chasing this volume?

Speaker #1: Are you actively chasing this volume?

Speaker #2: Well, I don't want to be like Wayne Bennett, if you've ever watched one of his NRL interviews. But the answer is yes. Yes, we are.

Michael Franks: Well, I don't want to be like Wayne Bennett, if you ever watch one of his NRL interviews, but the answer is yes. Yes, we are. That is exactly what we are doing.

Speaker #2: This is exactly what we're doing.

Speaker #1: A question from Gordon Sims: So, in the New Zealand orchard asset base, it has decreased by $9 million. Is there anything to call out of note?

Nicola Neilson: A question from Gordon Sims. In the New Zealand orchard asset base has decreased NZD 9 million. Is there anything to call out of note?

Speaker #2: So, what's happened in our normal course of business in our orcharding business is, for orchard long-term leases, we have gone and done a deal with landowners.

Michael Franks: What has happened in our normal course of business, in our orcharding business, is orchard long-term leases, where we have gone and done a deal with landowners and developed an orchard on their land, and then cropped that and brought it through to production. At the end of the lease, that development goes back to the owner. What you are seeing there with the reduction is those orchards going back.

Speaker #2: And developed an orchard on their land, and then cropped that and brought it through production. At the end of the lease, that development goes back to the owner.

Speaker #2: So what you're seeing there with the reduction is those orchards going back.

Speaker #1: No further questions. Thank you.

Nicola Neilson: No further questions. Thank you.

Speaker #2: Well, look, I enjoyed the questions. Hopefully, the answers were good enough, because they are honest responses. But we do really appreciate your interest in the company.

Michael Franks: Well, look, I enjoyed the questions. Hopefully, the answers were good enough because they are our honest response. We do really appreciate your interest in the company. We would welcome you to contact us outside of this call if you have got any questions or any information, either by email or by ringing us. No drama. Very happy to do that. I note that our email addresses are not on the contact thing, but michael.franks@seeka.co.nz or nicola.nielsen@seeka.co.nz will get us both. We appreciate your interest, and we appreciate your support. The next stop for us will be in October. October the 16th?

Speaker #2: We would welcome you to contact us outside of this call if you've got any questions or need any information—either by email or by ringing us, no drama.

Speaker #2: Very happy to do that. I note that our email addresses are not on the contact list, but michael.franks@seeka.co.nz or nicolas.nielsen@seeka.co.nz will reach us both.

Speaker #2: And we appreciate your interest, and we appreciate your support. The next stop for us will be in October, October 16.

Speaker #1: 16th.

Speaker #2: October 15th, when we've got our stakeholder update. So, one last thing I should bring to your attention, if I might: the company has announced that it has changed its chair.

Nicola Neilson: 15th.

Michael Franks: October the 15th, when we have got our stakeholder update. One last thing I should bring to your attention, if I might. Company has announced that it has changed its chair. Mark Dewdney has been recently appointed as the Chairman of Tatua Dairy Company. That, alongside his New Zealand King Salmon business, where he chairs, and his private substantial farming business, means he has got limited capacity to chair Seeka as well. We are fortunate that we also have a number of talented directors. Well, they are all talented, really. I shouldn't say that. The board unanimously has appointed Hayley Gourley to be our new chair. She is the chair now. She is a professional economist, where she started. She has extensive business experience and time at Scalzo Group and Rabobank, and she serves on the Reserve Bank of New Zealand Monetary Policy Committee.

Speaker #2: So, Mark Judney has been recently appointed as the chairman of Tatua Dairy Company. That, alongside his King Salmon business where he chairs, and his private substantial farming business, means he's got limited capacity to chair Seeka as well.

Speaker #2: We're fortunate that we also have a number of talented directors. Well, they're all talented, really—I shouldn't say that. But the Board unanimously has appointed Hayley Gurley to be our new Chair.

Speaker #2: She's the chair now. She is a professional economist, but she also has extensive business experience from her time at Scalarup and Rabo.

Speaker #2: And she serves on the Reserve Bank Monetary Policy Committee. From all of us, just thanking Mark for his time this year. He remains a director.

Michael Franks: On behalf of us all, just thanking Mark for his time as chair. He remains a director. Just letting you know that we now have a new Chairman, Hayley Gourley, in the seat. That's it. Thanks very much.

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Q2 2026 Seeka Ltd Earnings Call

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