Sanford [NZX: SAN], New Zealand's largest listed seafood company, posted a 5 percent decline in full-year pretax earnings as production of mussels and lower catches of tuna and jack mackerel weighed on the second half performance.
Earnings before interest, tax, depreciation and amortisation fell to $47.4 million in the 12 months ended Sept. 30, from $50.1 million a year earlier, the Auckland-based company said in a statement. Revenue climbed 0.6 percent to $462.6 million.
Net profit rose 3.8 percent to $20.4 million as it flagged last month, missing earlier guidance because of an impairment on the value of Australian quota. It took a charge of $2.8 million against the Australian business in the second half, adding to $1.4 million of charges in the first half.
The company said securing long-term access rights for its Pacific tuna vessels with Pacific Island nations is a key focus. "Forthcoming negotiations facilitated by the New Zealand government are likely to produce a positive outcome," the company said.
"Slow growth of Greenshell mussels in the Marlborough Sounds, difficult tuna catching conditions in the Pacific and lower-than-expected jack mackerel catches in Tauranga all impacted the second half results," the company said. "The ongoing high level of the New Zealand dollar continues to hamper growth in returns from generally-improved markets for most species."
The results are the last for long-serving managing director Eric Barratt, who will be replaced by Volker Kuntzsch in early December.
The company will pay a final dividend of 14 cents a share. The stock was down 0.9 percent to $4.46 today.
(BusinessDesk)
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Sanford full-year pretax earnings slip as mussels, tuna, mackerel weigh on second half
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