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

 

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news