Sharechat Logo

Sanford nets higher revenue in first half

By Phil Boeyen, ShareChat Business News Editor

Wednesday 17th April 2002

Text too small?
Fishing company Sanford (NZSE: SAN) is forecasting an improved second half after announcing a 10% rise in turnover in the first six months of the year.

Interim revenue to the end of December rose to $183 million, up from $166 million for the same period previously. Earnings before interest, tax, depreciation and abnormals rose to $39.3 million from $38.4 million.

Net profit fell slightly from $12.1 million to $11.8 million but the company points out that the previous year's result included a $3.7 million unusual gain on the sale of assets.

Sanford says increased sales of skipjack tuna and orange roughy helped to drive revenue and more than offset falls in hoki, ling, mussels and salmon.

"Orange roughy prices and volumes sold improved substantially over the previous period as the market in the United States rebounds from events of September 2001."

Foreign exchange losses decreased from $15.9 million last year to $11.5 million and the company says that, based on current exchange rates, they should continue to decline in the second six months.

Looking forward the company says it is pursuing a number of strategies to benefit from the major trends in global food and seafood industries.

"One strategy being actively pursued involves developing alliances and partnerships with other leading seafood businesses to capitalise on the changes and opportunities evolving in North America and Europe.

"To this end Sanford has recently acquired a strategic 9.4% shareholding in publicly listed Canadian seafood business, High Liner Foods. High Liner Foods produces, processes and markets fresh fish and frozen seafood products.

"This complements Sanford's existing 14.3% investment in FPI Limited . Sanford is also in discussions with a number of other potential investment partners."

Sanford says the outlook for the second half of the year is for further improvement based on continuing demand for orange roughy, seasonal increases in catches of hoki and improved catches of skipjack tuna in the Pacific.

A fully imputed interim dividend of 8 cents per share, the same as last year, has been declared.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Sanford names Volker Kuntzsch as CEO, replacing Barratt
Sanford faces three charges relating to illegal dumping of oil at sea
Sanford annual profit to miss forecast on lower skipjack tuna, toothfish and mussel harvest
Sanford annual profit falls 6.7% on mussel farm restructuring
Former Sanford engineer faces up to 26 years jail for obstruction
Sanford's Barratt 'disappointed' at US guilty verdict
US withdraws US24M 'proceeds of crime' claim against Sanford
US Justice Dept set to release Sanford fishing vessel in Pago Pago
Sanford full-year profit falls 11% as kiwi dollar's strength erodes returns in second half
Sanford annual profit falls as much as 12% on strong kiwi, lower tuna catch