Seeka finds another earnings gear as citrus growth lifts outlook

Profit Guidance Moves Higher

Seeka Limited (NZX:SEK) has raised its full-year profit before tax guidance by $2.0 million at the midpoint, offering a firmer earnings signal after what it described as strong third-quarter trading.

The produce and horticulture company now expects profit before tax of between $41.0 million and $45.0 million, up from its previous range of $39.0 million to $43.0 million. Both ends of the range have increased by $2.0 million, rather than the company simply narrowing its outlook.

Kiwifruit Returns and Citrus Drive the Uplift

Seeka attributed the upgrade to several operating factors: continued attention to operating margins, the incorporation of New Zealand kiwifruit returns from Zespri, and growth in its produce business, particularly citrus.

The announcement does not quantify the contribution from each factor, leaving the precise earnings mix unresolved. It does, however, point to a combination of trading performance, seasonal produce returns and margin discipline rather than a single one-off item.

Efficiency Savings Add Support

Seeka also said it had delivered further savings through its captive insurance programme while maintaining a disciplined focus on operating efficiencies. The statement gives no separate dollar figure for those savings, so their contribution to the revised guidance cannot yet be assessed independently.

The next test will be whether the stronger third-quarter performance carries through to the full-year result, and whether the upper half of the new guidance range is supported by realised kiwifruit returns, citrus performance and sustained operating margins.