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

 

Sealord’s annual results marred by Argentinian impairment

Sealord’s results marred by Argentinian impairment as other units prosper

By Jonathan Underhill

April 5 (BusinessDesk) – Sealord, New Zealand’s second-largest fishing company, reported a full-year profit that was dented by a charge against its Argentinian business, where a soaring peso and rampant inflation are driving up costs.

Profit was $5.2 million in the 12 months ended Sept. 30, from $13.4 million in the corresponding 15 month period, according to the Nelson-based company’s annual report. Sealord’s holding company, Kura, changed its balance sheet in the interim. Sales were $487 million in the latest year.

Sealord, which is jointly owned by Maori tribal interests through Aotearoa Fisheries and Japan’s Nippon Suisan Kaisha, took a $10 million charge against its Yuken business in Argentina in 2012, notes to its accounts show. That business also had an operating loss of $7 million in the period, so effectively $17 million was shaved off Sealord’s results in the latest period.

“The fishery is pretty much in the same state in US dollars but when you convert it back (to pesos), internal costs are massive,” Jason Dale, Sealord’s chief financial officer, told BusinessDesk. “Without Argentina, the business did better” in the latest year.

The peso is at a record low 5.1322 per US dollar. It weakened to 4.695 at Sept. 30, 2012 from 4.204 a year earlier. Argentina's annual inflation may be running as high as 26 percent, though the government disputes the numbers and puts out its own series which shows a slower pace of price increases.

That business may not be such a drag going forward. Dales said Sealord is “working with people to acquire parts of the business.”

The company kept the dividend payment unchanged at $160,000 a share, or a total of $16 million. The payment is based on the previous completed year and so relates to 2011.

Total liabilities in 2012 rose to $333 million from $291 million, with more classified as non-current and less as current.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

$7.5 Billion Surplus: Government Accounts "Show Strong Economy"

“The surplus and low levels of debt show the economy is in good shape. This allows the Government to spend more on infrastructure and make record investments in health and education,” Grant Robertson says. More>>

ALSO:

New OIO Application Trumps Judicial Review: OceanaGold Cleared To Buy Land For Waihi Tailings Expansion

In a surprise turnaround, the government has given OceanaGold a greenlight to buy land to expand its Waihi mine after the application was previously turned down by Land Information Minister Eugenie Sage. More>>

ALSO:

Christchurch Rebuild: Fletcher Sued For $7.5m Over Justice Precinct

Fletcher Building is being sued for $7.5 million by utilities contractor Electrix, one of the subcontractors on the Christchurch Justice and Emergency Services Precinct. More>>

Three New Drugs: PHARMAC Signs Bundle Deal For More Cancer Medicines

420 New Zealanders with lung cancer, breast cancer, multiple sclerosis and respiratory disease will benefit each year from a bundle deal PHARMAC has finalised with a medicine supplier. More>>

ALSO:

"Levels Playing Field": Government Responds To Electricity Price Review

The changes announced today include: • Supporting new and independent retailers by requiring the big power companies to sell into the wholesale market at affordable rates. • Extending discount rates to all customers • A pilot scheme to help customers who have not switched power providers before to shop around for better deals... More>>

ALSO: