Seeka Projects 2026 Net Profit Between NZD 38 Million and NZD 42 Million
Seeka anticipates a drop in net profit for 2026 following a return to typical kiwifruit yields in New Zealand and a weather-hit harvest in Australia. Automation efficiencies are helping to offset rising costs.
- 2026 kiwifruit volumes down in New Zealand and Australia
- Net profit before tax guidance of NZD 38-42 million, down from NZD 47.5 million
- Cost pressures remain high but partly mitigated by automation gains
- Australian harvest affected by hotter, drier conditions
- Balance sheet remains robust amid operational challenges
Kiwifruit Volumes Retreat to Historical Norms
Seeka Limited (NZX:SEK) has revealed its first earnings guidance for 2026, signalling a profit decline as kiwifruit production settles back from the bumper 2025 season. New Zealand’s Class 1 kiwifruit packing dropped to 45.4 million trays, down from 47.1 million the previous year, reflecting a shift from exceptional yields to more typical growing conditions. This return to average volumes spans Seeka’s core Hayward and SunGold varieties, which remain central to the company’s financial engine.
Australian Harvest Hit by Weather, Growth Plans Stalled
Across the Tasman, Seeka’s Australian kiwifruit harvest fell 14% to 2.25 million kilograms. The company attributed this shortfall to a hotter and drier growing season that stymied expected production gains from new developments. This weather disruption adds a layer of complexity to Seeka’s diversified produce portfolio, where kiwifruit continues to dominate earnings.
Profit Guidance Reflects Seasonal Pressures and Cost Headwinds
Seeka’s forecast for net profit before tax in 2026 ranges between NZD 38.0 million and NZD 42.0 million, down from NZD 47.5 million in 2025. The company emphasised the seasonal nature of its business, with most profit realised in the first half of the year post-harvest. Elevated cost pressures persist, though recent investments in post-harvest automation are starting to deliver efficiency gains that partially cushion these impacts.
Balance Sheet Stability Supports Operational Focus
Despite the profit downgrade, Seeka’s balance sheet remains solid, underpinning ongoing commitments to automation and operational improvements. The company acknowledged the efforts of its staff, contractors, and growers in navigating a challenging season, highlighting the human element behind the numbers.
Bottom Line?
Seeka’s 2026 outlook underscores the challenges of normalising volumes after a peak year and the persistent squeeze of cost pressures, even as automation begins to ease operational burdens.
Questions in the middle?
- How will Seeka’s automation investments translate into cost savings in the medium term?
- Can Australian kiwifruit production recover from this year’s adverse weather conditions?
- Will Seeka’s diversified produce portfolio offset kiwifruit volume fluctuations in future seasons?
