Seeka Kiwifruit Industries has made a net profit after tax of $7.1m for the six months to June 30, up 92 per cent on the $3.7 million reported in the previous corresponding period.

The company has also announced an increased dividend of $0.10 per share, up from $0.09 per share on the previous six months.

File photo.

The result reflects the successful completion of the avocado selling season, the first year's business operations for Seeka Australia and record New Zealand kiwifruit volumes.

The half year results include one-off gains from discontinuing long term leases, which added $457,000 to the after tax result.

'Seeka handled record New Zealand kiwifruit volumes at 32m trays. While these higher volumes have led to better earnings, they also required significant investment,” says chief executive Michael Franks.

'The company had invested $17.8m in New Zealand ahead of the volume increase and the infrastructure was in place to deliver growers a timely harvest. Early fruit performance was good, particularly in the SunGold variety.”

Michael says the company is satisfied with the six month results and thanked staff, contractors suppliers and growers for their efforts.

Key highlights for the half year included:

*the first harvest and sales programmes for Seeka Australia,

*significant infrastructure investment in the New Zealand core kiwifruit business,

*successful completion of the 2015/16 avocado selling season which delivered record returns to growers, and

*successfully managing and processing a record New Zealand kiwifruit crop.

Michael says the Australian operations has commenced profitably in the first season, with Seeka harvesting 580,000 tray equivalents of Australian kiwifruit, 1,432 tonnes of Nashi pears, and 1,791 tonnes of European pears.

Australian operations were profitable with earnings before interest, tax, depreciation and amortization of $1.52m, and delivered NPAT earnings of $660,000 for the half year.

'Our Australian earnings reflect a challenging first growing season, and we are learning about doing business in Australia and its environment.

'We are very positive about our Australian business and its potential and are continuing to invest in its development.”

Chairman Fred Hutchings says Seeka has delivered a timely harvest to growers and facilities were fully utilised.

'Disciplined and professional planning ensured that Seeka had the capacity to handle its growers' fruit. Seeka had a clear vision and strategy. The company was striving to grow from its kiwifruit foundation and to deliver excellent performance to growers and returns to shareholders.

'While the company focused on its core business and the integration of the Australian business, the strategy remained in place. This strategy may see the Company contemplate and action value accretive acquisitions or expand its geographical boundaries further. Seeka's vision remains to be New Zealand's premier produce business.”

Seeka will provide guidance for the current trading year at its Stakeholder Update on October 21.