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


Sanford’s Move From Volume to Value Helps Boost Profit 152%

16 November 2016
News Release

Sanford’s Move From Volume to Value Helps Boost Profit 152%

Sanford Limited (NZX:SAN) has today posted a 152% increase in net profit after tax to $34.7m for the year ended 30 September.

The Group posted an 85.5% increase in reported EBIT to $57.7m, with revenue up $13.2m to $463.5m.

Sanford CEO, Volker Kuntzsch said it’s a pleasing result after a year of focus across the business on executing the company’s volume to value strategy.

“The results show the company’s strategy of moving from a volume commodity exporter to a premium seafood company focused on value creation through utilising resources in the best way, is working well.”

“Sanford’s evolution is changing what we sell, how we sell it, the markets we’re building and who we’re selling to”.

“We’re reducing our reliance on a purely frozen wholesale commodity exporter, to an increasingly consumer centric business selling our beautiful New Zealand seafood fresh to customers, with a particular focus on our domestic market Australia and Asia.”

“This change also brings sustainability benefits across our business minimising our use of energy resources to transport and freeze large volumes of fish.”

Kuntzsch says in a first for the company, consumers will begin to see Sanford branded products for sale in the next year.

“The appointments of a Chief Customer Officer, General Manager Brand and Consumer, Domestic Market Director and General Manager Sustainability clearly highlight where the primary strategic emphasis will be placed to create more value with New Zealand’s precious marine resources. A more pointed interaction with the users and consumers of our seafood and a segmentation of our product portfolio into high value and commodity brands will bring this strategy to life.”

“The focus on delivering greater value from our seafood through improvements in the product cascade, operational efficiencies, supply chain and procurement practices coupled with an increasingly differentiated approach in sales and marketing, have all contributed to this strong result.”

Continuing operations revenue has increased by 5.5% year on year against a sales volume reduction of approximately 11%. Kuntzsch says the volume decline is largely attributable to reduced catches of pelagic species (mackerel, skipjack tuna) to align supply with demand and limit cold storage.

“Limiting the amount of lower value pelagic species in our portfolio, while targeting a higher volume of chilled fish sold to customers or directly to consumers resulted in a significant increase in value from prior year. Overall, value per kilogram of greenweight fish, a measure that combines the outcome of targeted operational activities with a sustainability focused approach, has improved by over 45% compared to last year”.

“Additional impacts on the result through cost, primarily in administration, reflect the investment into the development of a customer/consumer focused organisation. The enhancement of Sanford’s sales, marketing and innovation teams, sustainability, people management and the introduction of new disciplines such as supply chain management resulted not only in a build-up of much needed capability to help Sanford reach its vision, but also delivered a noticeable contribution to the profitability of the Group,” said Volker Kuntzsch.



1 | The full results are on the NZX available here:

2 | Sanford has also released its integrated report today, which is available here:

© Scoop Media

Business Headlines | Sci-Tech Headlines


Maritime Union: Deepening Supply Chain Crisis Requires Action

Maritime Union of New Zealand National Secretary Craig Harrison says the global COVID-19 pandemic exposed pre-existing weaknesses in our logistics sector, and created enormous problems... More>>

Air New Zealand: Employees Recognised With $1,000 Share Award

The efforts Air New Zealand employees made during one of the airline’s toughest years will be recognised via an award of $1,000 worth of company shares to all permanent employees... More>>

Consumer NZ: Bank Complaints On The Rise, Survey Shows

Nearly one in five Kiwis had a problem with their bank in the past year, Consumer NZ’s latest satisfaction survey finds. Consumer NZ chief executive Jon Duffy said the number of bank customers reporting problems had jumped to 18%, up from 11% in 2020... More>>

Mercury: Enters Into Binding Agreements To Acquire Trustpower’s Retail Business

Mercury NZ Limited (Mercury) has announced that it has entered into binding agreements with Trustpower Limited (Trustpower, NZX:TPW) to acquire Trustpower’s retail business for NZ$441 million... More>>


ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>

Stats NZ: GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip

Gross domestic product (GDP) rose by 1.6 percent in the March 2021 quarter, following a 1.0 percent fall in the December 2020 quarter, Stats NZ said today. "After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021... More>>