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New Zealand King Salmon Investments Limited (NZX: NZK) FY21 Full Year Results Announcement

Wednesday 31st March 2021

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New Zealand King Salmon Investments Ltd reports its financial results for the 7 months ended 31 January 2021 (FY21) today.

Key points include:

- Revenue of $95.2m

- Pro Forma EBITDA of $10.0m (7 months), compared to $25.1m in FY20 (12 months)

- Statutory NPAT is ($7.1m) (7 months), compared to $18.0m in FY20 (12 months), affected by Covid

- Proforma NPAT is $2.3m (7 months) vs $11.2m to 30 June 2020 (12 months)

- Sales volume of 4,117mt (7 months), slightly up on the same FY20 period (4,070mt)

Chairman John Ryder said: “It is a creditable outcome considering we are recovering from the challenges of the Covid-19 pandemic. The full financial impact of excess inventory, caused by the pandemic, has been absorbed into these results with appropriate contingencies built in.

“Going forward, our average price will return to pre-Covid levels, however margins will still be affected by higher freight and distribution costs. We are seeking to increase prices globally around the middle of the calendar year with a view to recovering some of these ongoing costs.

“Pleasingly, we have come through summer in reasonable shape with sea temperatures around average,” Mr Ryder added.

Managing Director and CEO Grant Rosewarne agreed the recent trading period had been tough.

"I am looking forward to the coming months and returning to our pre-Covid momentum. As a company we continue to diversify, our brands remain strong and we are highly optimistic that our plans to farm in the open ocean on the Blue Endeavour site will come to fruition later this year.

“New markets continue to deliver, including speciality retail and e-commerce. For example, we’ve recently placed a new Ōra King cold smoked product into a high end Italian speciality retailer, and we’re about to launch our Omega Plus pet treats into North American speciality pet retailers.

“The move into the open ocean will be a first for New Zealand and we believe it is a critical cornerstone to deliver on the Government’s Aquaculture Strategy to grow the industry from its current $625 million to $3 billion by 2035.

“Meanwhile, we expect climate change to continue to impact our business, so we are optimising inshore space via our new Prescient Aquaculture Model, which focuses on having the right sized fish in the optimal locations. This is achieved by introducing smaller fish into cooler sites and moving them as they grow, to ensure they are in the best sites for each stage of growth and have access to upwelling of colder water when at harvest-size. Once Blue Endeavour is up and running, our warmer Pelorus sites may be farmed outside of summer to minimise risk.

“We are also working through the salmon farm relocation process with Iwi and Government.”

We expect to provide market guidance in mid to late 2021. The Board has yet to make a decision on the resumption of dividends.

Please see the links below for details:

NZK FY21 Results Media Release

NZK FY21 Results Investor Presentation

NZK FY21 Audited Financial Statements

NZK FY21 Results NZX Notice

Source: New Zealand King Salmon Investments Limited

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