Seeka Limited (SEK) Earnings Call Transcript & Summary

[Foreign Language] It is written in the sky. It is written on the land. [Foreign Language] It is written in the hearts of everyone here at this time of Easter. What is the most important thing. Why it is love? It is love. [Foreign Language] It is the love of the great one who looks after us. It is the love of all of those who passed in the past 12 months. [Foreign Language] Our workers, our directors, our family members who have passed over the past 12 months. And it is the love of everyone who is part of the family of Seeka. [Foreign Language] We welcome the spirit of the great one to be amongst us, to help us, to bless us, to guide us and give us peace and goodwill as we begin this year [Foreign Language] .

Thank you, Turi. Welcome, everybody. My name is Fred Hutchings, and I'm the Chair of Seeka, and it's my privilege to welcome you here to this Annual Shareholder Meeting of your company. I'll also take the time to acknowledge and welcome those who are joining remotely, welcome. I also welcome Harmos Horton Lusk, Tompkins Wake, banking syndicate Westpac NZ, Rabo, ASB, BNZ and Westpac Australia and our auditors, Grant Thornton. For those of you who are in attendance, I hope you've already got your phones on silent. Please note the exits to the auditorium. If we need to evacuate, please make your way to the car park over there where a designated Seeka person will give you instruction. The Company Secretary has confirmed the Notice of Meeting was sent to all eligible shareholders, and we have a quorum, and accordingly, I declare the meeting open. You see there the agenda on the screen. You're welcome to ask questions as we move through the agenda. However, in question time, all questions will be through the Chair, and I will either answer or direct the question to someone who is better skilled to answer it. It's my pleasure to introduce you the directors who are all present today. Director elections today include Stewart Moss, Mark Dewdney and Hayley Gourley. Their profiles have been provided to you with the Notice of Meeting. Stewart is a Non-Executive Director and a member of the Remuneration Committee as well has been a large grower who has served on the Board since 2022. Mark is an Independent Non-Executive Director, who was appointed by the directors in December 2024. The Board has elected Mark as the next Chair following my resignation. Hayley is an Independent Non-Executive Director and a member of the Audit and Risk Committee, who was appointed by directors in January 2025. The remainder of the Board is made up of Hayden Cartwright, who is a member of the Audit and Risk Committee and a grower; Sharon Cresswel, who is the Chair of the Audit and Risk Committee; Ratahi Cross, who is a member of the Sustainability Committee; and Cecilia Tarrant, an Independent Director and Chair of the Sustainability Committee and a member of the Remuneration Committee as well. Proxies. There are approximately 14 million proxies as listed on the table. As Chair, I hold close to 11 million proxies, and I intend to vote in favor of all resolutions with the exception of Resolution 4, which I'm unable to vote on. Now there's been a number of new shareholders join our register. So I'd just like to go through what is the business of Seeka. Seeka is an integrated produce business that grows processes and supplies fruit to the domestic and international customers. Our primary product is kiwifruit. In New Zealand, we have an orcharding business that secures fruit to process at our network of post-harvest facilities, which we then store and supply to Zespri. And we ensure during that process that, that supply is of high quality. We also supply to our SeekaFresh business and other customers. In Australia, Seeka is an independent produce company, growing, processing and selling kiwifruit, European pears, nashi pears and jujubes. Seeka Australia presents a number of opportunities for growth. While Seeka began from being a kiwifruit company, we now have expanded our projects -- products, sorry, to include avocado, Kiwiberry, nashi pears, jujube and plums. Some comments on performance to strategy. The last 12 months has provided a much-needed return to profitability for the company, having experienced 3 difficult years. The 2024 year performance has demonstrated what your company is capable of achieving. Seeka has achieved these results through being laser-focused on operational performance, optimizing the post-harvest infrastructure for longer periods of the year and introducing new revenue streams. Seeka has controlled capital expenditure and the results of the restructure in the previous year delivered savings and overhead. I thank management on your behalf for their loyalty, commitment and successful management skills they bring individually and as a team every day to Seeka. Our financial performance has much improved. Seeka has achieved a record profit and reduced debt, which has meant a return to long-term banking covenants, and this has allowed Seeka to resume dividends. And everything we aspire as a group, of people working together is to deliver excellence to all our stakeholders. Now here's some numbers that I'm sure everybody should be pleased with. And we've now in 2024, reached $411 million revenue was a record, up 37%, of $43 million class 1 kiwifruit trays and Australian production was up 166%. EBITDA, which is earnings before tax and depreciation and amortization, was up 193% to $76 million. Our Australian EBITDA was $3.2 million, up 373%. We delivered a $30 million profit before tax, which was a record and what's a $31 million turnaround from the previous year. $0.31 earnings per share before deferred tax adjustment been a one-off adjustment due to the government's removal of tax deductibility of depreciation on buildings. Dividends have been reinstated, $0.10 paid in January on the 20th and a further $0.05 paid yesterday. And really, pleasing the net leverage ratio as calculated for the banking syndicate was 2.15: 1, which is much improved from the previous year's ratio, and it is still the Board's intention to reduce that further. So with those brief introductory comments, I would now like to hand over to Michael, our Chief Executive, to provide the financial overview of '24 and an outlook for '25 .

Thanks, Fred. Fred moves the podium away. I have to move it back closer again, so I can see you. Otherwise, all you'll hear is a voice and wondering who is actually speaking. Material this year, a little bit easier to work within the last couple of years. And so we're pretty happy about that. But of course, it's a poignant day for us, because it is Fred's last day as Chairman. And so I think we're all a little bit reflective about that and pretty sad. But of course, one book closes, another one opens. And so Mark Dewdney will take over. And of course, it's his birthday tomorrow. So in addition to being his birthday, he also gets a surprise and present of being appointed as a new Chairman. Material here is actually nearly the same as what I presented at the analyst briefing. If you happen to be on that call. As Fred just said, total revenue up $110 million at $411 million, up 37%, really all on the back of improved and increased kiwifruit volumes. We, in the previous year, packed 29.8 million trays up to 43 million. We run a hotel for fruit in a large part of what we do. And so we had better occupancy. Better occupancy leads to more revenue. More revenue means more profit. And so it's as simple as that. And on top of that, in Australia, as I'll update you in a minute, better kiwifruit volumes there as well. It's the driver of our profit in Australia and looked ahead a blinder. EBITDA, earnings before interest, tax, depreciation and amortization up $50 million on the previous year at $76 million and so 193% increase. Our return on capital employed, healthy 10%. And I'd say it's healthy because we've still got a lot of money invested in orchards in development. Therefore, is [ dead ] capital that will produce us a return when they get into production in those orchards. And so we're just patiently waiting for that to happen. And so we've delivered financial performance in line with our strategy. And perhaps the strategy of geographical spread and a little bit of diversification on our Kiwifruit Foundation has worked for the first time this year, rebounded profitability. We have been focused on costs. We have been focused on revenue. We have been focused on how we get more margin. $30 million profit before tax is up $51 million on a previous year. So it compares to a $21 million loss in '23. $9 million profit after tax is up $23 million on the year before, but -- and getting to that number, we have got this deferred tax adjustment of $12.5 million. So actually, that number is $21 million or thereabouts when you add it back. And so reasonably healthy. Our strict earnings per share was $0.21. If you give us the benefit of the doubt and add it back to deferred tax change, which comes about because the government decided that depreciation on buildings are no longer deductible, out into the future to the end of the life of those buildings, way out in the never, never land. If you give us that benefit actually the true earnings per share is $0.51. And so I think, reasonably satisfied with that performance. Improved profitability has allowed the company repay debt. We've been very strict and targeted with the capital spend. We are targeting deferred -- any deferred capital maintenance in the company. We are targeting switchboards and plant rooms by way of example. But we repaid $35 million in debt, all from operating cash flow. All of our covenants are well within their long-term range. We are focused on bringing down that leverage ratio a bit further, below 2x would be a good number to be. The Board's range is between 1.5x and 2.5x at 2.15x. We're not too far away. And so our capacity hasn't been stretched. The automation plan is underway. I'm going to share a bit more about that with you in a minute. Return to profitability has enabled the company to recommence dividends. The company has taken a measured approach to that given that we're also focused around the debt situation. We want to make sure that the company is in safe harbor, who knows what happens next. And so we just want to make sure we've got the strength in the balance sheet. $0.10 was paid on 20th of January. $0.05 was paid yesterday. Those who participated in the dividend reinvestment plan, the strike price was $3.46. Into the segments, you can see on the bars, the revenue, where do we earn our revenue in our orcharding business, $103 million; $247 million in our postharvest business; SeekaFresh is $31 million and $19 million in Australia. We orchard to make money, but we orchard to make sure we've got crop occupancy in our post-harvest business as the fruit flows through our supply chain. Orcharding business is headed up by Barry Penellum. He's here in the room somewhere. He is near the back there, put up your hand, Barry. Thank you. Grew 17.3 million trays of class 1 kiwifruit. It's 52% up on the difficult year before and 4.6 million trays are grown are leased, which is up 70%. The Orchard division has now got demand from growers to do more management and leasing of what I would call premium orchards, so it's positive. $103 million in revenue is up $16 million, reflecting the higher yields. $6 million EBITDA is up from $1 million in the year before. Team also grows avocados and kiwiberry. Kiwiberry being the most profitable commodity that we are -- a variety that we're actually handling and growing. And we've got some orchard developments coming into production. So you can see there on the bottom right-hand side the gold yields average per hectare. In '24, 13,464 trays a hectare, up 45% on the previous year's 9,295, a healthy increase. The Hayward yields at 11,224, up 67% on 6730 (sic) [ 2023 ]. So you can see the story of all of these numbers is coming out and what's happened right across the industry are rebound in kiwifruit volumes. Growers have done a fantastic job. Contractors have done a great job. Our Orchard division, likewise, excellent. Post-harvest business set up by Paul Crone, Paul? So Paul's is the General Manager, post-harvest services packed 43 million trays, up from the 30 million trays or 29.8 million to be more accurate on a better growing season. $247 million in revenue is up $64 million on higher volumes. $84 million in EBITDA is up 93%. All of our assets in this part of our business, a lot of them here $350 million or thereabouts in assets in this part of our business. We have now and we're realizing the gains from the automation changes that we've made, but also we are packing citrus on contract. We're packing persimmons on contract and we're packing avocados for ourselves and on contract. There's an automation plan underway. We are focused on making sure that any automation that we invest in pays back. It's got to do better than look good. It's actually got to earn returns for the shareholders to put the money in. And so we've been reasonably targeted there to make sure that our investment is smart, financially smart. In terms of Seeka -- SeekaFresh, it's a Retail Services division, is head up by Kate Bryant. If you don't know who she is, she's over there. You are welcome to talk to any of these people afterwards. $31 million in revenues, up 49%, really on growth in imported produce, bananas pineapple, papaya. And we've got higher sales for our own wholesale market in Auckland. If you didn't know we have one, we do. We have them for a number of years now, supplying fruit through to retailers and into major customers and into food stuffs and into Woolworths. $2.6 million in EBITDA is in line with the year before. This business also produces and sells Kiwi Crush and avocado oil, in which we are now integrating the new Olivado business into. So if you didn't know that we purchased the assets of Olivado in the Far North and we will focus all of our avocado oil manufacturer on that business once we get it fully integrated. Then we've got Seeka Australia, Jon Van Popering is here. Go on, John. Thank you. $19 million in revenue, up 85%, up 85%. Kiwifruit volume is up 166%. We've had to be resilient over in Australia with the pressure of Psa and Jon and his team have been resilient. They've been innovative, and they have brought in new sprays to be used in those orchards in particular, Actigard, and that has been a game changer for us. We're in the second year of using it. And last year's response from our orchards to that new regime has been fantastic. We've got nashi volumes up 10%. We have a new nashi variety to be launched in the middle of this year. It will be $3 million and EBITDA is up from $1 million last year. And look, we're on our way back in that business, and I'm happy to report. It needs to go further and our plan is to do so. In terms of the outlook, this might be what people are looking for. So Zespri has been forecasting 205 million trays of New Zealand kiwifruit. In fact I've seen numbers 217 million trays and so there could be some upside on that number. So that's up from a record 193 million trays last year. We have picked and successfully packed beyond our share of the early harvested fruit in the industry. And the crops that we have handled to date are a clean, smooth and above estimate. And so we're reasonably pleased with what our growers have delivered us, what our contractors have helped us get and what our own teams have done with it. In Australia, Australian harvest started in December. In case you didn't know that with plums heading through the pears. Kiwifruit harvest is ongoing. We've got new kiwifruit developments coming on stream that Actigard program has accelerated those developments. And so we're very happy with what we are seeing there now. Across both countries, the labor supply is excellent. We've had waiting lists in New Zealand before we started. We haven't had that in a very long time. All shifts are up. All shifts are fully manned. It's not something we have seen for a very long time. In fact, we've got standby crew in a [ pod key ] to bring the last night shift up if we want to and if we need to. So we're happy with that, too. In terms of our expected volumes, well, we have been targeting to pack more than 45 million trays this year. It's a number which we probably wouldn't normally release to the market or release to investors, but that was our target, but we did release it to Seeka growers yesterday, so we sort of thought we'd better share it with everyone. We are currently packing ahead of that. And so I can't say that we will definitely be packing ahead of it at the end of the harvest. We're about halfway through all crops. But at the moment, we are 5% to 10% ahead. And so we'll see what happens with this weather. We'll see how it all plays out in the end. We will report to the market at the end of the harvest about what we have done because it seems to be a mission-critical number. But we are handling that crop at the moment, and we're pretty pleased with what we're seeing as we go. I kind of know there's some people waiting for that number, so there it is. So I thought I also would share with you a little bit of what else we're doing. We have ordered a new packing machine for -- in Northland. It is a Chinese machine called Reemoon. It is a lower cost option, but funny enough, we are getting a more advanced machine than we have got anywhere else in the company. And so -- and there are some other aspects about that machine, which makes the business case compelling. And alongside it, we will have a technician here on the installation for 2 years, making sure it runs properly. Machine is scheduled to arrive at the end of this calendar year and be installed by Christmas for commissioning for next year. We can do that from within our CapEx number, depreciation number. We're just reorganizing things a little bit to make sure it works. But we -- I think we're delighted. It could be -- it will be a game changer. And there are some other technology that we have found particularly in relation to coolstores, which we are also very excited around. So if this works, you may see a video. I have to push the button again. [Presentation]

And so we're delighted with it. We're very excited by what it is they can do. The machinery that we're bringing into Kerikeri we have a normal European [indiscernible] on it but also a robot that kind of what you are seeing [indiscernible]. We couldn't convince ourselves at a robot but actually do just as good job a natural [indiscernible]. So Reemoon are giving us 2 on the basis they'll refund us 1, if we are not -- whichever one we don't want to keep. So that will happen. And if we're happy enough, if management is happy enough, we may will have a chat and recommend to the Board that we accelerate, the next stage of our development and automation plan by upgrading a machine at [ Hawke's Bay ] for the organics. So that's exciting, I think. As I'm a little bit nervous of what comes next. But here it is, and so of course Fred Hutchings does retire today, and on behalf of management, on behalf of the company, I think, it's been our privilege to have Fred as our Chairman. He has been rock solid and a resolute supporter of the company, even as we've been through some hard times. And given -- I said it last night, and I said a couple of days ago, we couldn't have ever expected or asked for a better chairman than what we got when we needed one. And I just applaud Board processes when they do things like this, and they brought us Fred Hutchings and it's been superb. In case you don't know what he's done. Here's an example of it. [Presentation]

$116 million in revenue in 2014, decided to move on from just down the foundation of Kiwifruit. We went and bought a wholesale market in Auckland SeekaFresh for $5 million, pushed on to kiwiberries because we believed kiwiberries might be resilient and an option to Psa. We acquired Seeka Australia for $26 million, added a new geography to the business. Of course, then we used to be Seeka kiwifruit industry before that. So we rebranded just be simply Seeka. [indiscernible] excellent. By doing business with us, you are indeed excellent. And of course, we're going to cross the [indiscernible] Kiwi Crush, avocado oil. We bought Auckland from TNG -- Northland from [indiscernible] and T&G for $40 million. And we are going to rise some capital to pay for that. Revenue at that stage $204 million. And we went up -- down to [indiscernible] $25 million, $237 million in revenue. [indiscernible] packhouse and Kerikeri for $16 million having installed some of the orchards. And we see $21 million of [indiscernible]. And we sold the orchards In Australia and leased them back raising $28 million, we went on to buy OPAC, $61 million, $310 million in revenue at that stage. We bought Orangewood for $7 million. Now we bought Fruitometry to give us a better understanding what's happening in the orchards for $2.6 million. Upgrades at KKP and transport $20 million. Then we hit the hard times of COVID. We imported NZ fruits over in Gisborne for $22 million. That's [ $348 million ] in revenue. Of course, we are [indiscernible] in Australia, jujubes and nashis to fight the weather events, knocked us down a bit. We bought some accommodation in Kerikeri $411 million in revenue from $112 million 12 years ago. $30 million profit before tax. Our EPS $0.32. And while kiwifruit is still our foundation, we have a basket of fruit produce that we handle and it is a credit to the Board, but it is also a credit to the Chairman who led us through all of those processes and led management and supported management as they might need to. So two things. Firstly, ahead of Fred Hutchings, not behind him, ahead of him is the wonderful, Anne Hutchings. So Anne we have a small gift for you just about to be delivered to your Chair. So the Chairman's wife. Now you give it to her. I'll trip and fall. So the shareholders won't know this, but actually we have a tradition in the company are giving key people who leave their own Monopoly board. And the very first annual report that was published by the company when you folded out the back page, someone will remember, there was a Monopoly board that talked about what the company had done. And there was only a few tiles on it, but it was meant it to be -- this is like Monopoly. Well, when key people leave, we present them with their Monopoly Board to tell them what they have done and what they're and what they've been building, what they have built. And so I'm happy to present this formally to Fred on behalf of the company and on behalf of management and thank him very much and invite him to take that in a little white envelope. I get to sit down now and he gets to stand up. I'll push the thing back again for him.

I won't tell you what his words of advice were just said. But thank you, Michael. That is not an achievement of mine at all because it takes a team to do that and it's management who does that. Our role as a Board is to listen and encourage and let them get on with the job. And I suppose one of the things I've been very careful about as a governor of Seeka is to make sure I stayed in my lane. So thank you, Michael. And on behalf, I'm sure, thank you for those lovely flowers around. With those few comments, I must get on to the next part of the meeting, and that's where we deal with some resolutions. Now I forgot earlier in the meeting to welcome those that are online. And does someone know how many are actually online?

60.

Yes, 60. So welcome to all of you online.

[indiscernible]

No, there will be time for general business discussion. So at this point, we'll stick to the agenda and we'll deal with the resolutions first. Thank you. Now it's the formal business of the meeting. We've got 5 resolutions, as outlined in your Notice of Meeting. There will be an opportunity for shareholders to ask questions on each as put to shareholders. And for the sake of good order, shareholders questions raised should relate directly to the matter being considered. As is our normal practice, we will take a poll on each of the resolutions. Shareholders in the room, you should have your voting card on arrival. If you did not register on arrival and wish to vote, please make your way to the registration desk just outside the room, and staff from Link will assist you. Please mark your voting intention for each resolution and the voting cards will be collected at the conclusion of the meeting. Shareholders joining online are able to cast their vote using the electronic card voting system. And that is there on the screen. To vote, you need to click Get Voting Card within the -- I'll just read this and make sure I get it right. With the outline meeting platform, you'll be asked to enter your shareholder or proxy number to validate. Please then mark your voting card in the way you wish to vote by clicking for, against or abstain. Against its resolution on the voting card once you have your selections, please click submit vote, on the bottom of the card to lodge your vote. Voting will remain open until 5 minutes after the conclusion of the meeting. And the results of the will be announced via the NZX. Each resolution set out in the Notice of Meeting is an ordinary resolution and as such, must be approved by a simple majority of the votes cast by shareholders entitled to vote and voting on the resolution. The outcome of proxy votes will be displayed for your information after voting of all the resolutions. Resolution 1, director election, Stewart Moss. I invite Stewart to address the meeting briefly. Stewart. Move this forward a bit.

I've been involved in primary industries all my working life, initially dairy from the U.K. On immigrating to New Zealand 25 years ago, we took the decision to move away from dairy farming and into kiwifruit, buying an orchard in [ Te Puke ]. To gain a better understanding of the industry, I work for Seeka during the picking season spending 5 years running a grader in the packhouse. I've been a member of KGI giving me an insight into the grower representation within the kiwifruits industry. In 2004, we developed a large-scale orchard from a greenfield site in partnership with 3 Te Puke-based growers. This has given me a broad range of knowledge of the kiwifruits industry from the practical through to the political side of the industry. 3 years ago, I was invited to join the Board of Seeka to be a grower voice and any grower concerns around the boardroom table. I'm seeking reelection to the Board to continue to be a voice for growers in line with one of Seeka's tag line, growers first. We are a volume business, growers is essential to the company to increase our volume and returns to shareholders. Thank you.

Thanks for those comments, Stewart. I now propose the following resolution to reelect Stewart Moss as a Director. Are there any questions from shareholders? Any questions from online? No, I see the head is shaking, there aren't. So thank you. The second resolution is to elect Mark Dewdney. I now invite Mark to address the meeting.

Thank you, Fred. [Foreign Language] Before I talk about why I'm here, I just want to recognize and thank Fred for his leadership of the business. Fred sitting here, contemplating becoming the Chair of the Board and hearing of your achievements has scared me stupid. You leave very, very big shoes to fill in. I'm just looking forward to doing the best job that I can. I'm originally from the Waikato. My executive career focused in primary industry. I worked for the Tatura Dairy Company for a number of years, then joined Fontera and ended up in Asia with Fontera. I was in Singapore for a couple of years in the Tokyo for probably 3.5 years where I was looking after Fontera's ingredient business through Asia. My family and I then came back to New Zealand and I was the CEO of Livestock Improvement Corporation, the dairy genetics and farm improvement company. And then I went from there after 7 years to PGG Wrightson as the CEO. I was CEO for about 4.5 to 5 years. That was where I gained my first exposure to the kiwifruit industry is we were a supplier of inputs to the sector. I then finished my executive career and have split my time between my family's farming business, which is based around the Waikato and the Bay of Plenty. We milk dairy cows, not as clever as Stewart in terms of, we've kept milking them, where he was clear enough to sort of get out and get into kiwifruit earlier. But we milk dairy cows, we milk sheep. We run a small cropping business farm, and we have a dry stock farm in Tauranga. And just recently, as I joined the Board, my family and I, we bought a small kiwifruit orchard in Te Puke. So we're getting exposure on the ground. In terms of other directorships, I sit on the Board of Tatua Dairy Company, a very small independent dairy processing operation in the Waikato, a small, very innovative and successful company. I'm the Chairman of New Zealand King Salmon who is a listed aquaculture business, probably New Zealand's largest aquaculture company focusing on salmon, in the Marlborough Sounds, which we sell around the world into foodservice and retail and now Seeka. I was delighted when Fred called me pre-Christmas and asked if I would be interested in joining the Board. I came across, met Fred, met Michael and the team and was taken from the first meeting in terms of the, what I felt the culture of the organization to be, the scale and the significant opportunity that I believe that the business has in the industry has to grow and continue to improve what we do for our customers and for our staff and for our shareholders. I love being on the Board. I'm really looking forward to playing my part as part of the Board, supporting Michael and his team who lead the strategy, development and the strategy execution. Our job is to make Michael and his team's job easier wherever we can but to challenge them as well to continue to lift the bar for shareholders. I look forward to meeting you, in the future, I thank you for your support. And again, I appreciate very much the opportunity to join the Seeka family. Thank you.

Thank you, Mark. I now need to put the resolution formally to elect Mark Dewdney as a Director. Are there any questions from the floor? Any questions from online? No. So we'll now move to resolution 3, the director election of Hayley Gourley. I now invite Hayley to address the meeting.

Thank you, and good afternoon, everyone. I appreciate the opportunity to address the meeting and look forward to your support, as I seek to be elected as an Independent Director of Seeka. My first experience of the kiwifruit industry was actually picking fruit as a teenager during the May school holidays. Now I know that's not unusual in this part of the world, but I can tell you at the very Northwest part of the South Island, it was quite unusual at that time. And of course, that fruit in those orchards are no longer there as the dairy farms and use change took over quite rapidly in the early 1990s, but my links to the land have been the foundation for my executive and governance career. I'm an agricultural -- an economist by professional education and have worked across finance, banking and manufacturing, both in New Zealand and internationally. Of particular interest and relevance, I think, to Seeka, the 3 roles I've had that -- with long-standing employers and organizations, the first was Rabobank, where in addition to leading the New Zealand business, I've worked alongside many companies across strategy and the primary sector value chain, locally and internationally, ranging from commodity traders through to food processes, food manufacturers to the retail side of the business and of course, importantly, with farmers and growers in various parts of the world. With the publicly listed company, Skellerup, I was very proud to lead their agri division for 4 years across 5 manufacturing sites internationally and particularly through the turbulent COVID years that challenged us all across supply chains, markets and to keep businesses running successfully. So I can appreciate what Seeka went through during those years as well. And thirdly, as a Non-Executive Director with LandCorp or Palmer really understanding the challenges that large-scale agriculture brings, the importance both to New Zealand, but in particular, the challenges of running those businesses successfully with the vagaries of climate, markets, actually the performance of people and our crops and animals alongside them. So I think that also has been valuable experience and things I can bring to the Board. The skills and focus in particular, I think, are really the commercial and strategic insights within the primary sector that I've experienced over the last 30 years, particularly in business development and achieving growth alongside balancing the need for risk management. We know that with reward, there's always risk and then getting that balance right is always a challenge, but one that I enjoy and look forward to progressing. Importantly, though, an appreciation of the very critical importance of stakeholder engagement and communication across all aspects of the business is really a key to success, I think, in any business and one that I both enjoy and enjoy being involved with. I believe that Seeka is well positioned for future success in growth and acknowledging the ongoing need to balance that growth and the growth strategy with the risks faced by the business. And I think that's been evident in recent years. I commend and respect the current and prior Board, management, staff, growers and shareholders that have supported Seeka up until this point and going forward and respectfully request your support in election as an Independent Director to the Board, and I'd look forward to making a contribution to that ongoing success of the company. Thank you.

Thanks, Hayley. So I now put the resolution and I'll do that, then I'll ask for questions to elect Hayley Gourley as a Director. Are there any questions?

First of all, I'd like to acknowledge you being our Chairman. Maybe this is not the opportune time. Maybe on your side from time to time.

Never felt it.

My question is [indiscernible] she comes with a pedigree. She told you that she worked for Skellerup for several years. I would have invested similar amount of money in Skellerup to what I invested in Seeka, I made millions of dollars at Skellerup. And I'll be patient that maybe our business will come back.

Thank you. Thank you, any other questions from the floor? From -- there are none. So thank you. We'll move to the next one. Directors are wanting to pay themselves. But anyway.

Resolution 4 is that the pool of funds available for the remuneration of directors be increased by an amount of $83,000 per annum from a maximum of $610,000 per annum to a maximum of $693,000 in each financial year payable to all Directors taken together effective 1 January '25. Now we have sort advice on this resolution, and that has been distributed to you in the Notice of Meeting. And the report -- that report is based on market data from comparable companies based on market capitalization, revenue, assets, industry and private companies. So the consultants put comparable companies in that, bought those buckets, they look at that and then use their judgment to make a recommendation to us to consider. The Board has obtained that independent report from Strategic Pay. And as I've mentioned already, it's made available to you. And this -- if you have a quick look at this table, you'll see that analysis and also the lower and upper range that the Strategic Pay recommended. This is at the bottom there. And like all good people, we pick the middle. And this is a slide that demonstrates the allocation -- proposed allocation where the Chair's fee would go up by $20,000 members by 10. No adjustment to the Audit and Risk Committee, and that is because our Audit and Risk Committee also works as the due diligence committee when we do need due diligence work done. And for that reason, it's already at the upper range of what we would normally expect in order -- the market expects an Audit and Risk Committee to be reimbursed by and some small adjustments to the Sustainability Committee and the Remuneration Manager Committee. So I'll pause there and ask if there's any questions. None from the floor, none from online. Well, thank you, and we'll look forward to seeing how that is voted on. The one thing I didn't mention is that the last time we sought a fee restructure increase was back in 2022. Resolution 5 is the appointment and remuneration of auditors and the resolution reads, to record the reappointment of Grant Thornton as auditor of the company and to authorize the directors to fix the remuneration and expenses of the auditor for the coming year. Grant Thornton automatically reappointed as auditors under the Companies Act. So we're seeking your authority to pay them. So I'll pause there and say, are there any questions on that resolution? None in the room. None online. Thank you. General business. So now happily open to the floor to ask any questions on any matters that we've already covered or any general business that they would seek greater clarification on about the company. Yes. We'll get a microphone come to you, sorry sir, so the people online can hear you.

It's a little bit related. It's actually in relation to Resolution 4. Not proposing Resolution 4, but I'm just sort of wondering as a bystander, exactly like how often do Directors meet? How many hours a week would our Directors spend and seek a fair sort of thinking. Can you give us an idea what it actually involves?

That's a good question. Well, we meet at least -- some are online, but it normally it would be 10 or 11 times a year. And then Directors participate in subcommittees as well. So if I took my example of as Chair, I would attend every Board meeting, every subcommittee meeting, which would add up to quite a few hours just in meeting time, let alone the preparation time. So it's not insubstantial

In addition, you take a phone call for me at least once a year...

Yes. So I do take quite a number of [indiscernible]. And the good thing about our Chief Executive is he rings me, I don't have to chase them. So hopefully, that helps. Any other questions from, I guess...

[indiscernible]

There a date, Michael, would you like to explain -- maybe I could ask John to explain it more because John is growing them. John, would you like to do that?

You have to repeat the question on the microphone so people online can hear it and then explain the answer.

Okay. The question whilst what are jujubes? So there are Chinese red date you can eat them fresh or dry. They're quite small, in the size of a golf ball, quite crispy, not really juicy but they're very sweet. They've got a bricks in the 30% range.

And I've tried them and in a dried form a very -- have a very unusual taste. It's not something that you would ever relate to any other fruit.

[indiscernible].

The question was, do we export them? We export some dried product only at the moment. We're looking at developing markets, but everything else is sold domestically fresh in Australia.

Yes, we'll just wait for the microphone to come.

Sorry, me again. I'm single I've just turned 80, so there must be some consolidation to the Chairman and the other probably only got a couple of years to go. I've been coming to Seeka since before Fred was the Chairman. So I've becoming quite a long time. I'm sorry, fellow shareholders. You're a lousy lot. Imagine asking a question at a shareholders' meeting, what is this jujube. Surely, we got other things to talk about it. No, I'm livid. And I told my wife is going to behave. So this is my behaving. You would have made a wonderful Chairman of a cooperative. The director here says, grow us first. Hang on. Is this a cooperative or a company. Do you know the difference between the company and a cooperative? What is it?

Cooperative is all growers working together. A company is looking after the shareholders?

Correct. But you said growers first.

I said that was one of Seeka taglines goes with it is. Without growers, we've got nothing.

Have you -- have you --. we can get rid of the growers and go into another business. We could go into the Seeka's business and make some decent money. Anyway, I had something else to say. Yes. Sorry about that. You pay the growers and the employees in part in shares. Now, the rate that you pay them out, the shares are worth $2.50 at the market, that's what it is. But the net asset value is $6. So why give them something that's worth to us shareholders $6 for $2.50. Don't you value your company? You should never do that. It doesn't go through the profit and loss. It makes you think that you're doing well. No. Get rid of all your side assets. We're not getting a decent return from Australia. It's a diversion to management's attention. We've been buying all these packhouse and what have you for 12 years. What was the share price 12 years ago?

About $0.80. What was it? It peaked. 12 years ago somewhere between $0.60 and $0.80 if I remember it was not. Okay.

So what was my question now. Shareholders pack up. No, that's a statement, sorry. Are you going to do better shareholders?

Thank you for your comments. I would just say we are in a business where you do need patience. And one of the comments I was going to make before I close the meeting, which -- I'll just check that there's no further meetings from the floor -- question, sorry. Yes.

Chris Malcolm, We've been through a pretty rough period, haven't we? And God knows what we face. You talk about your Risk Committee. Just a question. Do you run formal risk scenarios written down? And do you have far more contingency plans written down? And if you can share some of those would be interested?

Yes. We do have a formal risk register that's written down where our management bring to the Board on an annual basis and which is reviewed by the Audit Committee and the Board. Those that are at the top 15 of those risks are formally documented, assessed. Time is spent working through what the mitigation control should be to manage those risks. And then we also formally have the staff member that helps with that risk management register review and audit to make sure that those mitigation steps that are put in place are in fact, undertaken. So there is a very formal risk management process that has worked through. And in terms of the risk is management and the Board see them to make sure that they are managed as best we're able. Any further questions?

As a grower and a shareholder of the company, we've all had damage. And as you see, I've had a bit of bleeding in the year, it hasn't been great over the last 2 or 3 years. And -- but I respect what the Board has done and particularly the management to pull the company through some difficult periods for everybody. And yes, I'd just like to thank the Board on behalf of shareholders for what they've done. And I think looking forward, I've never seen such confidence in the industry that Seeka is able to capture. So yes, I'd just like to pass that on.

Thank you. Thank you, [ Manny ]. Any further questions from the floor? Yes.

Sorry. I'm surprised that no one's actually asked this question. So in the absence of anyone else, I'm going to ask you, has Seeka had any thoughts about what the Trump phenomenon is actually going to do for the profits of the kiwifruit industry and in particular Seeka?

We haven't formally discussed that as a Board, to be fair, at this point. So any comments that I make are off the cup. Now we need to remember that Seeka does not take kiwifruit to the global market. That's Zespri's responsibility, and it will be Seeka's responsibility to price that in those markets. And we have had no feedback from Zespri at this point of how they plan to approach that. And secondly, all the revenue that does come from those markets doesn't come under Seeka's books. It goes to Seeka's grower growth. Seeka growers who is an independent company that collects the money from Zespri and distributes it to the growers that grow fruit. So in some ways, you might say, well, Seeka's business is really about providing services to growers and receiving our revenues for providing those services to growers and the market may not affect us other than through the growing activity that we do ourselves. But it will never be as simple as that because we'll have to wait and see how well Zespri can sell its fruit. It does sell a bit of fruit into the United States, but it's not its primary market. Any further questions? Any questions online? There's no questions online. Well, I was just going to say that it's how it's been such a great pleasure to be involved with this company over 12 years. We started at -- when I was invited to start, it was at the height of PSA. The company was on its knees in many respects and had to cut people, had to cut its cloth to meet the revenue that was going to come in at that time. And we've diversified to try and minimize the risk of being a single packhouse and 1 region here in Te Puke and Michael's demonstrated some of the things that we've tried to achieve. Some of those, I will accept haven't produced as quickly as we would have liked to and generated the returns as quickly as I would have liked to. But I still have confidence that the opportunity is there for them to develop, and that's why I mentioned we have to have patience because there's no doubt this year has demonstrated what this company is capable of doing. And the last 3 years have been pretty tough for various reasons in which you're all familiar with from COVID to lack of labor and weather. And the weather risk is one of those things where we need to further reduce debt to get those ratios down so the company can -- is in a position to absorb those sorts of shocks, but at the same time, it needs to be able to access capital to take opportunities for further growth. So -- and my final comment before I close is that I'm very pleased with the Board that the company has now been able to assemble to take the company from now and into the future. And I'm sure they will serve you as shareholders very well. So with those closing comments, I'll ask Turi to close the meeting for us. Thank you.

[Foreign Language] Fred. William Longfellow Wadsworth. I shot an arrow into the air, it fell to earth. I know not where, I know not where. For so swiftly was its flight that it was lost from my sight. I breathed a song into the air. It fell to earth. I know not where, I know not where. For who has sight the keenness and the strength and the sight and the strength to follow a song in its flight. 12 years on in an oak, an arrow was found still unbroke. And what of the song from beginning to end. Fred It's found in the heart, of every friend. 12 years, Fred, today, we had the verses of the song. The song will be sung for many years to come. It's my old uncle, [indiscernible] parting is with such sweet sorrow. Goodbye for now, until tomorrow. [Foreign Language] May the grace of the spirit, may the fellowship of everyone here and the goodwill of everyone here, be with us all as you go safely as you stay safely over this Easter break. God bless us all. [Foreign Language] I blessed the food, by the way, and it's out there.

Thank you, too. Do make sure your voting papers get collected and do join us for refreshments down in the cafeteria.