Despite challenges, New Zealand King Salmon Investment Ltd. posts positive growth
Despite what it calls a “challenging year,” New Zealand King Salmon Investments Ltd. (NZX & ASX: NZK) managed to achieve 8 percent growth in revenues to NZD 172.6 million (USD 108. 8 million, EUR 98.5 million) in the year ending on 30 June, despite impacts to fish survival caused by high water temperatures.
According to its financial results for the 12 months ending 30 June, 2019, the company obtained its second-most profitable year ever.
“A challenging year has tested our resilience and yet we have still achieved a robust result and revenue growth. We achieved our second-most profitable year, despite sustained high-water temperatures during summer impacting fish survival,” King Zealand King Salmon’s Chairman John Ryder said in a release. “We continue to focus on operational improvement to advance fish performance and survival.”
Managing Director and CEO Grant Rosewarne said its “strong brand equity and solid pricing strategies” were key to the firm's solid revenue growth.
“For all our products we continue to target branded premium markets and have experienced a strong increase in value as a result,” she added in the press statement.
The company also reported a strong sales growth in key export markets, such as North America, which showed a 9 percent increase. The company also posted a 6 percent surge in other Asian markets (Asia ex-Japan and China), and was up strongly in China off a small base.
Other highlights of the report is the firm’s statutory net profit after tax of NZD 11.4 million (USD 7.1 million, EUR 6.4 million), down 30 percent in FY18, attributed to fair value biomass adjustment.
A Pro forma operating earnings before interest, tax, depreciation, and amortization (EBITDA) of NZD 25.2million (USD 15.8 million, EUR 14.3 million) was a 4 percent drop on fiscal year 2018.
Harvest volume of 7,931 metric tons was down slightly by 1 percent in 2018.
The firm is also anticipating a better performance in fiscal year 2020 with its focus on operational improvement to advance fish performance and survival.
It said it is forecasting fiscal year 2020 capex expenditure of NZD 20 million (USD 12.5 million, EUR 11.4 million) to fund enhancements and other infrastructure developments.
Photo courtesy of New Zealand King Salmon