Good afternoon, everybody. Welcome to this analyst briefing update for Seeka's unaudited six-month results to the 30th of June, 2025. Thanks very much for coming online. Welcome to you all, those of you from New Zealand and from at least one overseas who's bothered to come onto the call. Thanks very much for your interest and taking the time out to join us. Teams are very pleased with the results. We're very happy that we are able to report record results for the six months. Likewise, we've had a successful operational start to the year, and thankfully a safe one. Let me get into our business materials. It's somewhat easier to work with than it was two years ago.
I'm going to take you through the six-month highlights, talk a little bit about our balance sheet, go into some detail around operating segment performance, talk a little bit about our forward focus, and then we'd be happy to take any questions that you might have or like to ask of us at the end of the session. If it all goes to time, we should be done within the hour. Just to give you some idea of how long it should take. To the highlights. Firstly, we've had a record volume of kiwifruit handled in New Zealand and Australia. 47 million, actually 47.1 million class one trays in New Zealand, up 10% on the 43 million last year. 2,200 tons of kiwifruit in Australia, which is similar to last year, but we're very happy with how Australian orchards and businesses are looking. Those volumes have underpinned our performance.
Revenue at NZD 308 million is up 8%. We'll talk more about that in a minute. EBITDA, earnings before interest, tax, depreciation, amortization, NZD 83 million. Our profit before tax at NZD 59 million. Our earnings per share at NZD 0.90. All of those numbers are records for the company. We have delivered excellent operational performance in the eyes of our customers. We've received excellent fruit quality from our growers, and we're very delighted to have that. It's added to our efficiencies by having good fruit. We're focused on efficient harvest management. Our growers are seemingly very happy with the results that we're giving and the performance that they've had through harvest and indeed the fruit handling to date. We've delivered exceptional quality across all produce to the markets. Generally, we're actually quite pleased and satisfied with where we're at.
Net bank debt at NZD 131 million is down NZD 40 million on a year ago, largely driven by cash flow generated from within the business. In addition to that, we received NZD 64.8 million in July in the normal course of business, further lowering debt. We have built balance sheet resilience. Our leverage ratio is heading in the right direction, and we're within the range that the company has set itself, and we are managing sensibly down towards the 1.5 to 1 level. In saying that, and in focusing on debt reduction, we have continued to invest in our core business. We have got automation projects underway in Kerikeri and HukaPak, introducing the new REEMOON packing technology to the industry and the business. We have got our program maintenance system running.
We are investing in core assets, including our switchboards and plant rooms, which has the benefit to the company of lowering our risk profile and benefiting us with lower insurance costs. A number of aspects that we're very happy about in the first six in the financial results. Into a bit more detail, NZD 307.9 million in revenue is up 8%. Our gross profit at NZD 96.8 million is up 22%. Our EBITDA at NZD 83.5 million is up 22%. Our profit before tax at NZD 59.4 million is up 32% on the previous corresponding period. Our net profit after tax at NZD 37.8 million is up a flattering 121%. Noting that in the previous corresponding period, we had the adjustment for the deferred tax going through, adjusting for the inability to deduct depreciation on non-residential buildings after tax. That washes through last year, and now our comparative looks relatively good.
All of those numbers are records. Looking at the graphs, just to help you out, a higher graph on the right-hand side is better. The trend has gone up in revenue and in trays. You can see they follow each other. Our EBITDA has gone up a healthy amount, NZD 83 million compared to NZD 68 million last year. Our profit before tax from NZD 45 million to NZD 59 million. Our profit after tax from NZD 17.1 million to NZD 37.8 million. Total assets now in the company at some NZD 655 million. In terms of our operating segment performance, in terms of our orcharding business, NZD 9.7 million EBITDA reflecting better yields from orchards and 19.1 million trays in total, and a strong focus on costs and efficiencies. Post-harvest EBITDA at NZD 78.5 million is up from NZD 69.3 million.
Good focus on efficiencies, volume cures, a number of SINs, and actually allows us to go faster, better, smarter, and we've had full labor, and all of those things have contributed to being able to make better margins in our business. Retail services business, Seeka Fresh, EBITDA at NZD 1.5 million compares to NZD 1.1 million last year. This business is stepping up and stepping along. It won't be radical changes to this business. There's a deliberate business strategy underway in this part of our world. As long as it's constantly making steps forward, we are satisfied, and we're very happy with where it's at. Of course, in Australia, a much better growing season in Australia overall. Total volumes are up. EBITDA at NZD 6.4 million is up on NZD 4.9 million last year.
We're happy with the thousands of tons, the volume of fruit overall that we've handled, 5,700 tons of all varieties of fruit. Teams going well there. Importantly, the new developments that we're working on in Australia that we're growing, particularly in kiwifruit, have actually taken a big step forward in the growing season. We're looking forward to those orchards yielding in improved volumes next year. In terms of capital management, looking at our balance sheet, NZD 3.7 million of increase in capital employed on the half year last year, NZD 17.3 million increase in right-of-use leased assets over the same time last year, reflecting some core store developments that have happened for us with extended leases. When the orchards that we lease in Australia were sold from a third party to another third party, we extended those leases. It has an impact with our right-of-use assets.
NZD 8.9 million decrease in assets held for sale. It's now zero. We sold the one last orchard that we had in Northland. It was gone. We've sold it and realized it. I think we reported that last time. The Sharp Road accommodation facility that we had been proposing to sell is now retained in the balance sheet. While we might sell it, we will not sell it at any cost. The bids that we had for that facility were much higher than the cost of debt, much higher. We thought it was much more sensible to hold and retain that and fund it from within the business. Capital employed in the company now NZD 562.7 million. Continuing with the balance sheet, net bank debt NZD 130.6 million at the end of June is NZD 40.2 million lower than the same time last year. We banked that extra emolument in July, NZD 64.8 million.
Our banking facilities are at NZD 201 million with the banking syndicate. Importantly, our EBITDA multiple surrogate for leverage ratio, 1.57 to 1. Our EBITDA multiple pre-IFRS 16 leases, 1.76 to 1. Both of those ratios are better than they were last year and much healthier than what they were three years ago. I think, you know, we are reasonably satisfied that we are making strong progress in building a resilient balance sheet by lowering debt and focusing on profit. EPS, earnings per share and dividends. Earnings per share for the six months, NZD 0.90, up from NZD 0.41 last year, noting the deferred tax effect and taking that NZD 0.41 down from where it should have been. We've declared a NZD 0.15 dividend. The board has, the directors have decided it is sensible to make a distribution at this time.
That will be paid on the 15th of October to all shareholders on the register at the record date of the 18th of September. Our asset backing, net tangible asset backing at NZD 6.44 is up 9%. There is still some distance between that and our current share price, although there has been some share price appreciation more recently. As a result of everything that we're doing and where we're at in the year, we've updated our guidance. We do give guidance in the first and earlier in the year. Of course, when we give that first guidance, there are some uncertainties in our earnings. We're not sure about what's happening with the fruit in store. We've still got fruit to sell in Australia. We've still got a number of operational initiatives happening in the company.
The first forecast that we gave to the market was between NZD 33 million and NZD 37 million at a profit before tax level. As time has gone on and we've got more certainty about how the variables are working through, we're pleased to upgrade that guidance to between NZD 35 million and NZD 39 million. Some variables still to go in the year, and we will update the market should there be any significant movement again. At this point in time, that's our best estimate and forecast for the current year's earnings at the profit before tax level. Running into the operating segments, orchard operations headed up by Barry Penellum. It grows kiwifruit, avocado, and kiwi berry in New Zealand, leasing and managed long-term lease developments. A revenue of NZD 69.4 million is up 22% on the previous corresponding period, reflecting greater fruit volumes as an orchardist.
EBITDA at NZD 9.7 million is up nearly 200%. We've grown 19.1 million trays in that part of our business. SunGold yields are up 7% and Hayward yields up 10%, and that largely is the effect of it. We've had some outrageously good performances in some of the very good orchards that we've got. It's been an exceptional growing season in the kiwifruit industry. Our own orchard division, top 20 SunGold orchards exceeded 20,150 trays per hectare. Our top 20 Hayward orchards exceeded 15,250 trays per hectare. Truly remarkable performance from the team. While we can't predict what next year's forecast is going to be, it's too early. We've had very good winter chill in nearly all regions, which increases the probability that we could do it again. There's no certainty in this game.
It's a horticultural business, but having good winter chill is putting wind in your sails and putting the wind at your backs. It's better to start well than not, and seemingly we have. Post-harvest operations head up at Port Crone. It really coordinates the harvest, packing, cool storage, and shipping of kiwifruit, avocados, persimmons, and citrus to the orchard owners in New Zealand. A number of those products are packed on contract to third-party marketers, but the bulk of it is packed to be marketed by Zespri. Revenue of NZD 204.6 million is up 6%. EBITDA of NZD 78.5 million is up 13%. We had growth in kiwifruit volumes. Total volumes of 47.1 million compares to 43 million last year, and then two years ago, 29.8 million. A remarkable bounce back. Alongside that, we have been investing in automation.
Automation that we made previously and investments we made previously have delivered for us in the current year in driving efficiency gains and margins. We are continuing to make sensible automation investments now to further reinforce those margins as we go forward. Good numbers, much nicer than it was two years ago. Seeka Fresh retail services business is headed up by Kate Bryant. It really handles all of the fruit that we don't supply to Zespri. We're marketing class two kiwifruit, avocados, packing kiwiberries. We're importing fruit to New Zealand and selling it. We're exporting fruit from New Zealand and selling it. Of course, we've got Kiwi Crush and the selling operations at DNFC. NZD 1.5 million in EBITDA is up 39% on the PCP. Low investments in this part of our business. Strong performance of kiwiberry, Kiwi Crush, avocado, banana sales.
Look, it's all gone reasonably well, and we've got good yields. Acquisition of the Northland avocado and olive oil business, which we purchased from Olivado in liquidation, sets the business for future growth. It might take us a year or two to get those into profit. We will patiently build the business and focus on it, but it does add a dimension here in this part of our business structure for future growth, albeit on a small scale and actually with quite low investment. Yeah, we're pretty happy to be honest. In terms of Australia, fully integrated growing, packing, and retailing kiwifruit, European peers, Asian peers, plums, jujube on owned and leased orchards and largely in Shepparton. Revenue of NZD 22 million is up 14%. NZD 6.4 million in EBITDA is up 32%. Volumes are up across the board. Kiwifruit pretty stable, just down 2%, but pretty much the peers are up.
We've got investments in Australia in new development orchards there, which have taken a step forward. The crop protection program in Australia has done particularly well. We're pretty happy with how the orchards are developing, and we have growing confidence that they will come in for us and develop future profits going forward. That business is headed up by John van Popering. In terms of our forward focus, we're really reasonably quiet. We're focused on completing a successful year in every respect that the word successful means. Financially successful, operationally successful, and safe. We are doing that in earnest. Big loadout weeks we're in at the moment, so teams are under a bit of pressure fulfilling our market orders. We are focused on delivering our automation programs. We are focused on the two new machine installations that we've got going on.
One in Northland with REEMOON with new citrus machine and a brand new kiwifruit machine. Two down here at HukaPak at the Mount with a new REEMOON packing machine, fully automated, which will handle our organic crop as well as some conventional. We are looking at other opportunities in the business around automation with the potential to trial a fully lights-out core store, which we intend to have a trial running later this year, all things being equal. In doing all of that, our focus and our goal is to maintain a resilient balance sheet, to continue to have a stable and perhaps decreasing leverage ratio, and not to increase the leverage ratio significantly. Of course, it's in our DNA. We are focusing on our earnings growth. We are conscious that the market is looking for us to do that.
We've made great steps in the last two years along that pathway. We understand it's going to continue. We are in an inflationary period with items like electricity and packaging, but in spite of that, fundamentally, we're looking at bottom line earnings growth regardless of that. That is the end of the presentation and our analyst briefing to you. We're happy to take any questions we might have. Nicola Neilson, the CFO who's with me, and Nick Reynolds, the Group Financial Controller alongside here, will take the questions and one of us will answer them. No questions.
We have a question from Trevor. Congratulations on the strong result. My question is in relation to the Australian segment. To what extent is the sales mix between domestic supermarkets and exports driving the volatility in Australian profits? As production volumes increase, at what scale of production do you expect operations to consistently deliver year-on-year EBITDA growth?
I think that's a very insightful question. Let's start by saying that so I can catch my breath and think about how I'm going to answer it. Our profit in Australia is largely driven by kiwifruit. The other products that we grow there, the varieties that we grow there, some of them make money in one year and don't the next and tend to offset each other. Our profits are largely around what we do in kiwifruit. The other parts of the business, the other parts of the varieties that we grow, largely deliver us a viable business, which gives us continuity of staff and employment and cost recovery. Building a less volatile business in Australia is around building a bigger kiwifruit business because we know and believe we can make money doing that. We have 100 hectares or thereabouts in production at the moment.
We have 67 hectares coming into production progressively from this year, but really in earnest from next year. My answer to you about how do we get a more resilient and less volatile business in Australia is about getting those kiwifruit orchard developments into production and getting the volume up. We've got excellent demand. Most of the fruit that we grow in Australia is sold in Australia. We only export for capacity. This year, we exported something like three or four containers, which is nothing really because we've got a good fruit market in Australia, which optimizes the sales. We've got excellent export demand if we want to take it up, but at the moment, our focus is on maximizing what we've got, Michael.
You mentioned that there are some variables that may affect the end-of-year profit guidance. Can you talk to what some of those variables are and what the potential impact would be?
There are some variables that will impact our profit guidance, but they're not necessarily all negative. We need to see how the fruit that we've got in store still is performing. We've got about 18% of the fruit still in store today, although we are loading out big volumes this week and next. Over the next seven to 10 weeks, we will largely be heading towards completion. It's not too long to go. If the fruit performance continues to be good, then there will be some upside in the guidance. If the fruit performance is not so good, then there could be some negative in our performance. We are also still selling through our Asian peers in Australia and some of the European peers. If they don't sell as expected, and we're reasonably conservative with our expectation, they could impact us.
If they sell better, then we'll have some positive impact. We're happy with the current guidance range at the moment. If our forecasting process, which is reasonably disciplined and carried out monthly, shows us some variation, we'll advise the market and the investors immediately.
From David at Craig's Investment Partners, what is the current packing capacity, and how will the automation projects in Kerikeri and HukaPak increase that capacity?
Okay, in terms of capacity, it's a bit of a moving feast because it does depend upon shipping and timing of shipping. We load in and ship out and load in and ship out. The current core store capacity is between 50 million and 52 million trays, a number that is in that range, we imagine. We've still got a little bit of upside in our capacity footprint now. The investments that we've made to date aren't so much around capacity. It's about efficiency. How quickly can we handle that fruit? With what labor component do we need to handle that fruit to put it in store? If we can, and our focus has been, if we can do it faster, better, smarter, taking costs out, and there's a payback for us, then there's a positive investment. We are looking at our core storage. We are thinking about it.
We move fruit around now because where we've got capacity may not be where we've got demand. We currently move fruit around to optimize our core stores all the time. Sometimes we manage our harvest to our capacity. The true number is 50 million- 52 million. We're constantly looking at options around capacity. In anything we do, it will not be jeopardizing our balance sheet resilience.
Can you speak further to the impairments of NZD 1 million expensed for the half year?
In our impairments for the half year, we've got some of it is writing off the old equipment that we had in place that we've replaced with the new REEMOON machines. That's what we've got there. Nicola, you better answer that than me.
We had some write-offs of some older pear varieties that we cut over into new developments.
Yeah, that's right. In Australia, part of what we've been doing is balancing our crop supply to what the market demand is. There's no point in growing a crop volume beyond what the market wants to efficiently take. In regard to that, some of the heirloom pears in Australia we've cut out, and there's been an impairment as part of that as we reset.
No further questions.
Let's just give you a few minutes before we round it up to see if there's any last questions in the mix.
We have just had another one come through. Within orcharding, are you able to disclose how many hectares are currently in production?
We have those numbers here, but in the analyst pack, which has been distributed, if you just divide one number by the other, you've got the hectares. That's right, isn't it? That's right. The numbers, they're actually there. You've just got to calculate it. You can answer it if you like.
To provide a bit more of a breakdown, in managed hectares, we've got around 1,100 hectares. Short-term lease, we've got about 300 hectares, and in our long-term leased book, we've got just over 100 hectares, with all of those in what we call full production now, although they will be progressively increasing in volume as they come into mature varieties.
We have 60 hectares or 70 hectares of Hayward orchards and ventures in [Row Caulquarry] that are coming into production progressively for next year. It gives us some upside for our Hayward crop, which is useful for us from a capacity perspective because it comes in after Gulp. Someone held their hand up. Online, did you see that? It might have been a phantom hand. There being no other questions, thank you very much for taking the time to come onto the call. Thank you very much for your support. We've pretty much outlined the six-month results in some detail. We've given you some insight to what we think the guidance is going forward. Hopefully, we've also given you some insight to management and the company's attitude to what happens next. In the meantime, thanks very much. We're pleased to have your support. Thank you very much for that.
We'll let you go. Thanks very much for coming along.