New Zealand King Salmon lifts FY2017 earnings guidance
26 June 2017
New Zealand King Salmon lifts FY2017 earnings guidance and reconfirms FY2018 guidance
Due to strong ongoing market demand and continued positive fish performance, the directors of New Zealand King Salmon Investments Limited (New Zealand King Salmon, NZX and ASX:NZK) advise that Pro-Forma Operating EBITDA1 for the full financial year to 30 June 2017 is now forecast to be between $20.5m and $21.0m, an increase to the $19.2m forecast for the period in the Product Disclosure Statement registered for New Zealand King Salmon’s initial public offering in September 2016 (PDS).
FY2017 Pro-Forma Operating EBITDA excludes:
· The $1.8m one-off supplier settlement gain (advised to the market in May 2017);
· Costs of approximately $0.8m incurred to date in relation to the Ministry for Primary Industries’ proposed salmon farm relocation process currently being worked through (as detailed in New Zealand King Salmon’s FY2017 half year results presentation, these costs are being incurred on behalf of all stakeholders and are excluded from New Zealand King Salmon’s Pro-Forma Operating results); and
· One-off costs of $2.0m incurred by New Zealand King Salmon for its initial public offering completed in October 2016 (as detailed in New Zealand King Salmon’s FY2017 half year results presentation and disclosed in the PDS).
Following finalisation of the New Zealand King Salmon Group’s 2018 budgets the directors confirm that, based on current market demand and fish performance expectations, New Zealand King Salmon continues to expect to meet the FY2018 forecast in the PDS, being Pro-Forma Operating EBITDA of $22.4m and NPAT of $14.1m for the year ending 30 June 2018.
New Zealand King Salmon expects to release its results for the year ending 30 June 2017 prior to market open on 25 August 2017.