Auckland, New Zealand-based Sanford Limited said that challenges related to COVID-19 continue to beset the seafood industry, but there are early signs of recovery “as markets start to reopen and new markets gain traction.”
The company’s adjusted earnings before interest and tax (EBIT) for the six months ending 31 March, 2021, were down by 53 percent, decreasing from NZD 23.2 million to NZD 10.7 million (USD 17 million to USD 7.8 million, EUR 13.9 million to EUR 6.4 million) in the period, which the company described as “largely preceded the impact of COVID-19.”
“Overall conditions during HY21 are similar to the COVID-impacted second half of FY20, which had Adjusted EBIT of NZD 15 million [USD 11 million, EUR 9 million) a similar year-on-year decrease of 53 percent,” the company said in a statement.
Sanford Limited reported that its 2021 interim results are consistent with its most recent update to the market, issued on 17 March, 2021.
Sanford registered a net profit after tax (NPAT) of NZD 16.2 million (USD 11.8 million, EUR 9.7 million), which included a NZD 13.3 million (USD 9.7 million, EUR 8 million) gain on a NZD 24 million (USD 17.4 million, EUR 14.3 million) sale of two non-core properties – a Tauranga, New Zealand-based cold storage facility and a “property asset” in Christchurch.
Even with the sale, NPAT decreased 15 percent from the NZD 19 million (USD 13.9 million, EUR 11.3 million) NPAT it recorded in HY20.
Sanford's revenue HY21 decreased 5 percent to NZD 233.5 million (USD 170 million, EUR 139 million).
Sanford CEO Peter Reidie, who on his position in April, said COVID-19 lockdowns continue to impact Sanford's major markets.
“COVID-19 has had adverse effects on foodservice demand, prices, labor, and supply chains, especially freight. However, we have been able to switch markets, processing plants, and product formats to retain profitability,” Reidie said. “We continue to manage the COVID impact as best we can, whilst ensuring that we are better positioned for when foodservice markets reopen.”
Photo courtesy of Sanford Limited
