Sanford notes 25 percent increase in profits in latest financial report
Auckland, New Zealand-based seafood company Sanford Ltd., a large producer of farmed salmon, mussels and oysters, posted a 25 percent increase in net profit after tax following a renewed push to focus on value-added products, branding and domestic sales.
In its recently announced financial results for the six months ending 31 March, 2017, Sanford’s net profit increased to NZD 19 million (USD 13.5 million, EUR 12 million), compared to the same period in the prior year. The company also reported improved revenue of NZD 230.4 million (USD 163.1 million, EUR 145.9 million) for the first half of its financial year, compared to NZD 219.4 million (USD 155.3 million, EUR 139 million) for the same period last year.
“We have had a challenging first half in some ways – adverse weather impacted operations on numerous occasions and pricing for commodity items such as jack and blue mackerel was lower than we would like, but our ability to still deliver a good result speaks to the value of a focus on fresh and to the resilience we have in this company, resulting from the diversity of our excellent portfolio,” CEO Volker Kuntzsch
The company said it achieved greater profits through higher pricing of its non-commodity offerings including toothfish, scampi and salmon. Kuntzsch said Sanford had already initiated a shift in its production toward higher-value items such as fillets, and that efforts to increase the value of its offerings would continue.
“We have really just begun this journey and will continue to focus on adding more and more value and thereby creating improved returns with one of New Zealand’s most iconic natural resources,” he said.
Sanford’s wild-catch business posted solid results through this financial reporting period, the company said, with the volume of fish caught increasing year-on-year by 1,600 metric tonnes (MT). The longline and deep-water freezer vessels contributed the majority, while the inshore fleet’s production was hurt by poor weather, it said.
Sanford also was able to increase its domestic sales in New Zealand, with NZD 79.7 million (USD 56.2 million, EUR 50.5 million) in sales for this reporting period, compared to NZD 68.7 million (USD 48.6 million, EUR 43.5 million) for the same period in 2016.
The company said in its release that it sought to continue to build up the premium reputation surrounding several of its brands, including its Big Glory Bay brand of King salmon, farmed Bluff oysters, and Greenshell mussels from Stewart Island. The
The company did face some negative news, as its new vessel in its freezer fleet, the San Granit, “took longer than expected to start fishing to capacity because a number of technical adjustments had to be made to optimize the vessel for New Zealand conditions.”
Along with its results, the company also announced two hirings. Karen Duffy began in the role of chief people officer, and Fiona MacMillan started as general manager of corporate communications.