Wednesday 23rd May 2018
|Text too small?|
Sanford, New Zealand's largest listed seafood company, lifted first-half profit 43 percent as it continued to focus on higher value items such as fish fillets rather than frozen commodity products.
Profit rose to $27.3 million, or 29.2 cents per share, in the six months ended March 31, from $19 million, or 20.4 cents, a year earlier, the Auckland-based company said in a statement. Revenue from continuing operations lifted 18 percent to $272.7 million. Earnings before interest and tax lifted 14 percent to $35.4 million.
Sanford said the result was also driven by strong sales growth in both domestic and international markets. Europe and China were two highlights: overall sales in these territories increased by 85 percent and 79 percent respectively. Both regions now represent more than 10 percent of total revenue, it said.
Stronger global squid prices and good demand for green shell mussels were other positive contributions. The company also pointed to support from an increasing number of contract fishers who supplement Sanford’s inshore catching capacity by harvesting high-value line caught species for its premium product portfolio.
Chief executive Volker Kuntzsch said the result is particularly pleasing given the challenges. "Weather has continued to be an issue for us. Cyclones, heavy rains and warmer ocean water temperatures impacted on our operations across the country. That meant smaller vessels had to seek shelter from the weather on several occasions and our farmed salmon in Stewart Island’s Big Glory Bay also felt the effects of warmer waters during the summer," he said.
Sanford's mussel business performed above the same period last year, with both volume and pricing trending higher. The company continues to focus on diversifying its mussel product portfolio in order to reduce dependence on the frozen half-shell mussel market.
Chief customer officer Andre Gargiulo said there was growing demand for green shell mussel powder from the recently acquired Enzaq plant in Blenheim. As a result, the company is investing in greater production capacity and seeks to double output over the next few months.
The company will pay a 9 cents per share dividend on June 15, unchanged from the year earlier.
The stock fell 0.6 percent to $7.80 and has fallen 5.4 percent so far this year.
No comments yet
NZD headed for 0.6% weekly gain against greenback
PREVIEW: RBNZ tipped to keep cash rate at 1.75%, reiterate next move could be up or down
Sky TV hires Deloitte partner as fill-in CFO
Vector fined $3.6 mln in industry first
SIS Group to partner with Platform 4 Group
Dry weather cutting dairy production, boosting power costs
22nd March 2019 Morning Report
NZ dollar dips back below 69 US cents, focus shifting to RBNZ
Top Energy's geothermal expansion to cut lines charges
MARKET CLOSE: NZ shares rise on Fed restraint, local GDP growth; Auckland Airport slides