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Sanford annual profit falls as much as 12% on strong kiwi, lower tuna catch

Friday 28th October 2011

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Sanford, the fishing company, said annual profit fell as much as 12 percent, reflecting the impact of a strong New Zealand dollar on export returns and a lower Pacific tuna catch.

Net profit was $22 million to $23 million in the 12 months ended Sept. 30, from $25 million a year earlier, the company said in a statement. Sales rose 10 percent in the year though all of the increase occurred in the first half, it said.

“Results for the second six months have been impacted by lower tuna catches by vessels operating in the Pacific and the effect of the stronger New Zealand dollar on export receipts,” the company said.

The New Zealand dollar reached a post-float high above 88 US cents at the start of August. In the 12 months ended Sept. 30, the kiwi gained about 10 percent.

Sanford shares fell 1.6 percent to $4.84 and have edged up about 3.6 percent this year. The stock is rated ‘underperform’ based on the consensus of four recommendations compiled by Reuters.

Earnings before interest, tax, depreciation and amortisation were about $50 million, little changed from last year’s $49 million.

Sanford said returns from aquaculture improved in the second six months, with stable prices though lower-than-expected volumes.

The company plans to release its full results on Nov. 30.

BusinessDesk.co.nz

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