Sanford earnings flat as company transitions to more value-added products
Sanford Limited, a fishing and seafood processing firm based in New Zealand, saw its net profit increase depsite flat sales in 2017.
The company reported its net profit after tax increased by eight percent to NZD 37.5 million (USD 25.7 million, EUR 21.8 million) in its 2017 fiscal year, which ended 30 September. Net cash flows from its operations improved by 46 percent to NZD 50.3 million (USD 34.5 million, EUR 29.3 million) on higher revenues and an improved collection timeframe, the company noted in its year-end financial report.
“We are very satisfied with the progress we are making at Sanford in implementing our strategy of enhancing the value of New Zealand’s beautiful seafood. We are making substantial changes at the company which require a broad and deep organizational shift to build our preparation and capability,” Sanford CEO Volker Kuntzsch said.
Sanford surpassed its adjusted earnings before interest and tax of NZD 63.7 million (USD 43.6 million, EUR 37.1 million), up from NZD 63.4 million (USD 43.4 million, EUR 36.9 million) in 2016. The company also reported a three percent increase in revenue to NZD 477.9 million (USD 327.3 million, EUR 278.1 million), despite recording flat sales volumes.
Kuntzsch said he was proud of that result due to the “year of ongoing transformation” the company experienced. He said the company saw better prices for its toothfish, salmon, and scampi.
“We are proud of the launch of our Big Glory Bay salmon and mussels, which is a concrete example of our strategy of moving from being a volume-based commodity exporter to a value-focused business, which utilizes resources in the best way and seeks to put innovation into action,” he said.
Kuntzsch said the company hoped to achieve greater value out of the recent acquisition of Enzaq, the Blenheim, New Zealand based Greenshell mussel powder manufacturer.
“Greenshell mussel powder is well known for its anti-inflammatory properties and we are continuing to explore opportunities to grow this market and derive more value per kilogram from what might otherwise be a commodity product,” he said.
The price of the company’s stock, which is listed on the New Zeland Stock Exchange under the symbol SAN, began the year trading at NZD 6.70 (USD 4.59, EUR 3.90) and has risen to its current price on 16 November of 7.97 (USD 5.46, EUR 4.64).