Sanford Ltd. on Wednesday reported its financial results for the six-month period ending 31 March.
The New Zealand fishing and seafood-processing company’s operating earnings reached NZD 43.6 million (USD 27 million, EUR 19.4 million) in the first half of fiscal 2009, up from NZD 35.5 million (USD 22 million, EUR 15.8 million) in fiscal 2008.
However, Sanford’s profit totaled NZD 26 million (USD 16.1 million, EUR 11.6 million) in the first half of fiscal 2009, down from NZD 35.3 million (USD 22 million, EUR 15.8 million) in fiscal 2008
“The increase in underlying earnings for the business resulted from improved contributions from deepwater and aquaculture operations more than offsetting declines in returns from inshore and international fishing,” the company said.
“In the early part of the period we benefited from strong market demand and prices coupled with a declining New Zealand dollar,” the company added. “From October that slowed down as international markets reacted to the global financial crisis. While markets are slowly returning to normal, there has been a build up in inventory levels for some species while markets find a new equilibrium.”
Sanford is cautiously optimistic about the second half of fiscal 2009, which ends 30 September.
“There is some prospect of international trading conditions being slightly easier, but with the current strength of the New Zealand dollar it is still not possible or indeed wise for Sanford to project a year-end profit result,” the company said.
We continue to have a first rate team in place with a well balanced portfolio of interests in various fisheries,” the company added. “We see those operations continuing throughout the remainder of the year without the need for any downsizing, and so our primary focus will be on continuing to build and improve the quality of our assets and operations to achieve future growth.”
Hoki, orange roughy, smooth and black dory, arrow squid, greenshell mussels and oysters are among the products Sanford harvests and processes.
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