The Te Puke-based company reported profit of $10.4 million in the six months ended June 30, from $11m in the same period a year earlier.
Seeka said the bottom line included a $1.5m write-down of goodwill to its tropical fruit business, Seeka Glassfields.
Revenue rose 8.5% to $145.4m and earnings before interest, tax, depreciation and amortisation lifted 7% to $23.5m.
Glassfields, which imports and ripens tropical fruit and provides a logistics service for retailers, suffered after a major customer sourced a direct supply of bananas in 2018, Seeka said.
That pushed the board to reassess the value of the tropical business.
Seeka had already written down the business by $2m in 2017.
It now recognises just $440,000 of goodwill for the business.
Seeka said it expects a better second half than in 2017 with a rebound in volumes of NZ kiwifruit production and stronger avocado volumes and earnings.
It gave guidance for annual net profit to be between $6.5m and $7.2m compared to 2017’s $5.8m and ebitda of between $24m and $25m, from $23.1m.
Still, it noted 2017’s profit included a number of non-recurring negative adjustments, including the $2m Glassfields write-down and a $1m deferred tax adjustment.
Seeka said the first half saw increased kiwifruit crop volumes, up 21% on the previous year to 31.1m tray equivalents handled, and record returns on avocados, delivering average return to growers of $40.81 a tray from $24.85 a year earlier.
It also said its Delicious Nutritious Food Company, which manufactures Kiwi Crush drinks, increased ebitda earnings to $400,000 in the first half, from $160,000 in 2017.
The board declared a 12 cents a share dividend, payable on September 21 with a September 14 record date.
Seeka’s shares last traded at $6.40 and have dipped 0.8% this year.
