Sanford posts 27% drop in annual profit

Sanford posts 27% drop in annual profit on year-earlier asset sale; revenue slips

Nov. 25 (BusinessWire) – Sanford Ltd., the biggest fishing company on the NZX, posted a 27% decline in full-year profit, reflecting a year-earlier one-time gain from an asset sale and the impact of weakening sales.

Net income fell to $39 million, or 41.7 cents a share, from $53.3 million, or 57 cents a year earlier, the company said in a statement. Sales fell 0.8% to $433 million. The year-earlier results included a $29.7 million gas on asset sales.

“In the context of the weaker market prices for many species and the high value of the New Zealand dollar, particularly in the second six months, the overall result is considered satisfactory,” managing director Eric Barratt said in a statement. “While there are some positive signs in some markets there remains overall a feeling of uncertainty as to whether markets have bottomed.“

Shares of Sanford climbed 1.1% to $4.80 and have declined 11% so far in 2009, after recording one of the few strong gains on the NZX 50 last year. The company will pay a final dividend of 14 cents a share, unchanged from a year earlier.

Sanford recorded net foreign exchange gains of $8.4 million, helped by cover taken out when the New Zealand dollar was lower. The company had a “relatively strong” first half, then weakening prices and a rising New Zealand dollar resulted in second-half pretax earnings being 50% below the first half, the company said.

One of the bright spots of the year was “continuing strong demand and price” for orange roughy, it said.

(BusinessWire)

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