Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Sanford FY profit falls 6.7% on charges; sales growth stalls

Sanford annual profit falls 6.7% on mussel farm restructuring; US law suit take toll

By Paul McBeth

Nov. 28 (BusinessDesk) - Sanford, the country's second-biggest fishing company by sales, fell 6.7 percent after it took charges on restructuring its Coromandel mussel farm and legal fees for its unsuccessful defence of claims it dumped waste oil off American Samoa.

Net profit fell to $20.9 million, or 22.3 cents per share, in the 12 months ended Sept. 30, from $22.3 million, or 23.8 cents, a year earlier, the Auckland-based company said in a statement. That included a $2.6 million writedown on its North Island Mussel Processors investment and a provision of up to $5 million in legal fees and fines in the US Department of Justice prosecution. Sentencing is scheduled in January next year.

The result met Sanford's October guidance, when the fishing company downgraded its annual earnings expectations to between $20 million and $21 million having previously signalled an improved second half. Its Pacific tuna operation was hit by a lack of fishing time from two of its three vessels, one of which was detained due to the US prosecution and the other needing an upgrade.

"Events of the past year neutralised our expectation of improved returns this year," managing director Eric Barratt said in his commentary. "We have outlined the impact of those events and believe that we can continue to be positive about prospects in the coming year."

The shares fell 1.1 percent to $4.40 in trading today, and have gained 8.8 percent this year. The stock is rated an average 'hold' based on four analyst recommendations compiled by Reuters, with a median target price of $4.86.

Sanford's revenue slipped 0.9 percent to $460 million in the year, with smaller contributions from markets in Australia, Europe and North America while sales into Asia picked up across the board. The company fattened its gross margin to 18 percent from 16 percent a year earlier.

Barratt said both local and export markets were firmer for inshore fish species, though the strong currency "continues to be a challenge." Deepwater operations were the main contributor to earnings.

"The inshore and deepwater operations are expected to continue to provide strong contributions through ongoing focus in business improvement and increased catching efficiency," he said.

The board declared a final dividend of 14 cents per share, taking the annual payment to 23 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news