Auckland, New Zealand-based Sanford Company has come off a challenging year that has seen increasing impacts from climate change, according to the company’s most recent financial reports.
Climate change – in addition to a fatal accident onboard the company’s San Granit, which resulted in the death of Steffan Stewart – compounded to limit the company’s net profit for the year. Sanford Company’s net profit after tax for the financial year to 30 September fell from NZD 42.3 million (USD 27.1 million, EUR 24.5 million) to NZD 41.7 million (USD 26.8 million, EUR 24.1 million). The company posted relatively flat earnings before interest and tax (EBIT) of NZD 64.8 million (USD 41.5 million, EUR 37.6 million) compared to NZD 64.7 (USD 41.4 million, EUR 37.5 million) last year.
But despite the result missing expectations, Sanford, which is the largest fishing firm in New Zealand, still enjoyed increased reported sales. The company’s reported sales revenue was NZD 545 million (USD 349 million, EUR 316 million), compared on a like-for-like accounting basis with last year's, was NZD 558 million (USD 358 million, EUR 323 million). That represents an 8 percent increase from NZD 515 million (USD 330 million, EUR 298 million) in the prior year.
The sales volume of 115,000 metric tons was down 5 percent, which the company said was due to lower catch volumes.
"Climate change is the number one risk we face as a business,” CEO Volker Kuntzsch said in a release. “We see the consequences of warmer waters and adverse weather conditions playing out in the oceans and on our bottom line.”
Kuntzsch said climate change has impacted a range of its operations, including its fishing and salmon- and mussel-farming businesses.
He said warming waters are affecting the business, but said the company remained committed sustainable fishing practices and the responsible management of marine resources.
“We will lead by example in health ocean management so that future generations can enjoy and benefit from our biologically diverse, safe, and healthy oceans,” he said.
Weathering the challenges, Sanford has moved marginally closer towards its goal of NZD 1 (USD 0.64, EUR 0.58) EBIT per kilogram (GW kg). The number increased to NZD 0.56 (USD 0.36, EUR 0.33), up from NZD 0.54 (USD 0.35, EUR 0.31).
The company operating expenses rose by NZD 4.9 million (USD 3.9 million, EUR 2.8 million) compared to last year, but according to the release the increase is due to investments in training, research, and more.
In addition to the earnings report, company Chairman Paul Norling announced his retirement from both the chair position, and as a board member.
“It has been a privilege to serve in both capacities in what, to my mind, is aniconic New Zealand company with a great history and even more importantly a future which has many opportunities of great potential from its very strong foundation today,” Norling wrote.
