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

 

SeaDragon sales to more than double on new contracts

SeaDragon sales to more than double on new contracts

By Suze Metherell

June 19 (BusinessDesk) - SeaDragon, which manufactures fish oil for health supplements, expects to more than double annual sales as two squalene contracts worth US$6 million boost revenue in the second half.

The Nelson-based company's two contracts to supply squalene, an oil refined from shark's liver, will bring combined gross sales to US$6 million for the year starting Oct. 1, and chief executive Ross Keeley told BusinessDesk he expected revenue to more than double this year as the contracts kicked in from the second-half of this year and overlap into the first-half of the 2016 financial year. SeaDragon reported annual sales of $3.1 million for the year ended March 31, with a profit of $431,000.

Earlier this year the company secured supply of new raw material for its squalene production. SeaDragon has been investing in a new factory as it seeks to diversify from its current production of squalene and shark liver oil products and ramp up production of higher value Omega-3 fish oils from hoki, tuna and salmon, enabling it to grow its share of the US$30 billion market for fortified foods and drinks.

"Given that these sales contracts do not utilise all of the raw material contracted to be supplied to SeaDragon, considerable upside exists in terms of both volume and sales value for the balance of the finished product that will be produced," Keeley said in a statement. "We are now very well positioned for the current financial year and beyond and are looking forward to 2015 when the completion of our new oil refinery plant in Nelson will allow a major expansion in our range of Omega-3 fish oil products."

In January SeaDragon raised $4.1 million in a share sale to existing investors, exceeding its $2.5 million target. The funds, combined with $2.5 million from the sale of a stake in Snakk Media and $2 million from a share placement, were to be used for working capital, debt payment and funding the new plant.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Water: Farming Leaders Pledge To Help Make Rivers Swimmable

In a first for the country, farming leaders have pledged to work together to help make New Zealand’s rivers swimmable for future generations. More>>

ALSO:

Unintended Consequences: Liquor Change For Grocery Stores On Tobacco Tax

Changes in the law made to enable grocery stores to continue holding liquor licences to sell alcohol despite increases in tobacco taxes will take effect on 15 September 2017. More>>

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO: