Sanford: Increased profitability ahead
By SeafoodSource staff
30 May, 2012
Sanford Ltd. on Wednesday released its results for the six months ending 31 March and said it expects its profitability to improve in the next six months.
The New Zealand seafood company’s revenue increased slightly from NZD 228 million in the six months ending 31 March 2011 to NZD 230.3 million in the six months ending 31 March 2012. Sanford’s gross profit also jumped from NZD 39.6 million in 2011 to NZD 43.7 million in 2012, while its operating profit edged up to NZD 19.6 million in 2012 from NZD 17.4 million in 2011.
Looking ahead, Sanford said, “We expect profitability in the second six months of this year will be improved over the same period last year, providing international market conditions remain the same as they have been over the first six months. The recent reduction in the value of the New Zealand dollar will assist if it remains below USD 0.80. We have recently increased our foreign exchange hedging position to protect us from further extreme variations of the New Zealand dollar.
“There is no reason to expect that catches of species such as hoki, ling, silver warehou, scampi, snapper, trevally, jack mackerel and tarakihi will not be in line with our expectations,” the company continued. “Greenshell mussel production in Havelock and Christchurch should continue to be at high levels and will likely minimize the effect of the reduced mussel production from the Coromandel area.
“Market conditions for most species should be stable although there is concern over salmon prices as Chile production volumes increase. The squid season has been reasonable so far although it is too early to say whether it will run as long as last year. With high prices for skipjack tuna the final result for the year will very much depend on catch rates in the Pacific over coming months. The San Nikunau will have a delayed start to the Pacific season as it undergoes its planned survey and maintenance program.”
30 May, 2012