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


Sanford 1H profit slips on lower prices for tuna, mackerel

Sanford 1H profit slips on lower prices for tuna, mackerel

By Suze Metherell

May 28 (BusinessDesk) - Sanford, the listed fishing company, reported a 17 percent drop in first-half profit, driven by lower prices for pelagic species such as skipjack tuna and blue mackerel. It held the first-half dividend unchanged at 9 cents a share.

Net profit was $11.7 million for the six months ended March 31, from $14.1 million a year earlier, the Auckland-based company said in a statement. Sales fell 9.6 percent to $221.1 million.

Sanford operates across the fishing industry, including inshore and deepwater fishing and processing, aquaculture operations of salmon and mussels farming as well as three international tuna vessels. It didn't break down results by market segment, instead providing figures for its New Zealand unit, where earnings fell 23 percent to $11.3 million, and Australia, which turned to a profit of $183,000 from a loss of $1.1 million a year earlier.

Customer sales in New Zealand increased 7.6 percent to $42.3 million, while Australian sales slipped to $39.6 million from $44 million. European sales were largely unchanged at $29.8 million while sales in North America surged 34 percent to $38.4 million.

"The major export markets for our main species have either been buoyant or remained firm for the first six months," the company said. "The only significant exceptions have been the skipjack commodity market which has suffered from short term oversupply, and the blue mackerel market which has experienced a significant reduction in demand. The domestic market has performed well, particularly for quality, fresh fish."

After balance date, Sanford agreed to buy the mussel farming and processing assets of Greenshell NZ Limited and Greenshell Investments from receivers to add supply and "minimise biological risk through geographical diversity". Previously directors of the mussel company had tried unsuccessfully to sell the assets and there were concerns about its ongoing viability and “various complex contractual arrangements,” according to the first receivers’ report. The mussel farms were kept operating pending the sale of assets.

The company said today that it expected aquaculture and fishing operations to exceed the previous year, weather permitting.

The shares were unchanged at $4.10 and have fallen 12 percent in the past year. The stock is rated an average of 'hold' according to three analysts surveyed by Reuters with a median price target of $4.65.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news