Source: Radio New Zealand
Sanford’s net profit for the year ended September was $63.7 million. Supplied / Sanford
Seafood company Sanford has made a record full-year profit driven by the strong performance of its aquacultural business.
Net profit for the year ended September was $63.7 million, or more than three times the year earlier’s $19.7m.
However, overall revenue was little changed at $584.1m.
Cash flow was up 85 percent on the year earlier, helping the company cut net debt by nearly half to $92.1m.
Managing director David Mair said improved profitability, prudent capital management and conservative dividend levels played a part in the debt reduction.
“Sanford plans to reduce debt further in FY26 so that capital investment initiatives can be considered and funded within our balance sheet.”
While Sanford’s salmon and mussels aquacultural business exceeded expectations, the wild catch fell short of the year earlier.
“We are now focused on operating as a commodity player, where reducing costs and operating more efficiently are critical for our continued success,” Mair said.
“I have carried out an initial high-level review of our aquaculture businesses (salmon and mussels) with a clearer understanding of what is needed to build a platform for growth.
“Driving product costs down and lowering overheads will make us more competitive in any market. Whilst we have made improvements, there is a lot more that needs to be done.”
He said global demand for protein continued to increase, though market turbulence continued.
“This means we need to review the markets we operate in. Sanford has become concentrated in several large traditional markets, particularly China and the US. China is, and will continue to be, a key market for our company.
“The US will remain more challenging. We must create a broader market scope for our products, then develop, maintain and enhance our interactions with key customers in those markets.”
He said many factors were beyond Sanford’s control.
“While always striving for performance improvements, it should not be assumed that this year’s financial result will be repeated.”
The company will pay a full year dividend of 10 cents a share, which was the same as last year’s.
Sanford’s chairperson Sir Rob Mcleod also announced a plan to retire from the board in the next calendar year.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
