Seeka provides market update and guidance

Seeka Limited [NZX:SEK] provides the following update. Seeka operated as an essential business throughout the COVID19 containment period with the kiwifruit harvest's across New Zealand and Australia drawing to a close in the next two weeks. The effects and costs associated with COVID 19 have been significant together with very dry growing conditions in New Zealand and Australia lowering crop volumes. SunGold volumes whilst ahead of 2019, are behind expectation and Hayward [Green] volumes are expected to be below last year and expectations. This being the second year of lower yields and volumes for Hayward in New Zealand. The Company has responded well to the challenges of harvest, COVID19 conditions, the withdraw of maturity testing services to the kiwifruit industry by Eurofins, and the shortage of labour. The Company's operational earnings are expected to be significantly lower through lower margins, additional costs and lower volumes in the current year. Seeka has continued to innovate to achieve efficiencies; to continue its strategy of divesting Northland orchards; and has implemented it's sale and lease back strategy in Australia. These initiatives when completed are expected each to positively impact profit. The Company having considered its current year performance and expecting the completion of its divestment transactions, expects earnings before tax to be in the range between NZD$9m and $11.0m for the full 2020 financial year compared to NZD$9.8m in the previous corresponding period. As previously advised the Company will consider its dividend at the June Board meeting. Release ends: For further information please contact: Michael Franks Seeka Chief Executive 021 356516 Stuart McKinstry Seeka Chief Financial officer 021 2215583 End CA:00353412 For:SEK Type:MKTUPDTE Time:2020-05-20 15:28:04