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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news