Sanford’s profit eroded by strong Kiwi dollar
Sanford, New Zealand’s biggest listed fishing company, reported an 11 percent drop in full-year profit after the rising kiwi dollar eroded returns in the second half, higher fuel costs and fleet disruptions.
Profit fell to NZD 22.3million in the 12 months ended September 30, from NZD 25 million a year earlier, the Auckland-based company said in a statement today. Sales rose 10 per cent to NZD 464 million.
Sanford estimates that a 1 cent decline in the New Zealand dollar adds about NZD 2 million to earnings before interest, tax, depreciation and amortisation, so the impact of the currency averaging 82 US cents in the second half, from 71 cents a year earlier, resulted in about NZD 14 million of lost EBITDA. Fuel costs rose by NZD 6.5 million in the latest year.
Managing director Eric Barratt said the more recent easing in the currency and likely stability in market pricing of the company’s main species, will help make up for fuel prices that are likely to remain challenging.
“We have some optimism that profitability will improve in the next year to closer to acceptable levels,” Barratt said.
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