Fonterra will announce its full-year result on Wednesday.
In July, the dairy co-operative announced its forecast normalised ebit was likely to be about $1 billion, instead of the forecast $1.079 billion stated in the Shareholders' Fund prospectus.
It attributed the lower figure to drought in New Zealand and the reshaping of its Australian business.
Forsyth Barr expected an underlying net profit after tax of $718 million, up 18% (or $109 million) against the previous corresponding period, Forsyth Barr has rated the Fonterra Shareholders Fund, which allows external investors the opportunity to participate in the economic returns of Fonterra, with a sell recommendation.
Broker Andrew Rooney said it was a complex investment mechanism for a complex underlying business.
Earnings growth headwinds were apparent and included margin pressures from higher input cost, a reduction in WACC-based (weighted average cost of capital) processing returns, and a reversal of the product mix benefits experienced in the first half of the financial year.