Highlights

  • Seeka expects FY2026 net profit before tax between $38 million and $42 million.
  • New Zealand kiwifruit volumes declined as yields returned to more typical levels.
  • Automation investments are helping offset ongoing cost pressures across operations.

Overview

Seeka Limited (NZX:SEK) has released its first earnings guidance for FY2026 following the completion of most of its New Zealand and Australian kiwifruit harvests. The company expects net profit before tax to range between $38 million and $42 million, compared with $47.5 million in FY2025. While kiwifruit remains the primary driver of earnings, production volumes were lower than last year due to more normal growing conditions in New Zealand and challenging weather in Australia. Seeka noted that operational efficiencies from automation initiatives are helping manage elevated cost pressures.

Why Is Seeka Expecting Lower Profit in FY2026?

Seeka’s earnings outlook reflects a decline in kiwifruit production compared with the previous year. In New Zealand, Class 1 kiwifruit packed totaled 45.4 million trays, down from 47.1 million trays in FY2025. The reduction follows a return to historical average yields after exceptionally strong growing conditions last year. As kiwifruit remains Seeka’s most significant earnings contributor, lower harvest volumes are expected to impact profitability despite continued demand and stable operations.

How Are Weather Conditions and Automation Affecting Seeka’s Performance?

Australian kiwifruit production fell 14% year over year to 2.25 million kilograms due to hotter and drier weather conditions, limiting expected growth from new developments. At the same time, Seeka continues to face elevated operating costs across its business. To improve productivity and margins, the company has invested in post-harvest automation technology. These efficiency gains are helping reduce the impact of rising expenses while supporting the company's long-term operational performance and balance sheet strength.