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

 

Sanford posts 8% gain in full-year profit

Sanford posts 8% gain in full-year profit on year-earlier vessel impairment; sales rise 3.1%

By Jonathan Underhill

Nov. 15 (BusinessDesk) - Sanford, New Zealand's largest listed seafood company, reported an 8 percent gain in full-year profit although the increase reflected a year-earlier impairment tied to a discontinued business and underlying earnings were relatively flat.

Profit was $37.5 million in the year ended Sept. 30, from $34.7 million a year earlier, the Auckland-based company said in a statement. Sales rose 3.1 percent to $477.9 million, which Sanford attributed to improved prices from its king salmon farming business and higher catch volumes in its fishing business.

Profit from continuing operations fell to $37.5 million from $37.8 million a year earlier, while adjusted earnings before interest and tax were about $300,000 higher at $63.7 million. The year-earlier net profit included a $3.1 million loss from a discontinued operation after the company took a further $5 million impairment against San Nikunau, its remaining International Purse Seine (IPS) vessel, which was sold in May 2016 for $3.9 million.

Sanford kept its 2017 dividends unchanged at 23 cents with a final payment of 14 cents payable on Dec. 8 announced today. That decision reflected the company's heavy investment needs "as we continue the transition journey from a commodity fishing company to a value-focused domestic and global seafood supplier," it said. Those investments delayed the company reaching its debt/ebitda ratio target, it said.

Sanford shares hit a record $8.10 last week and slipped 0.4 percent today to $7.97. The stock had gained 18 percent this year.

In September, Amalgamated Dairies, an investment vehicle for the Goodfellow family, said it had raised about $21 million reducing its holding in Sanford to 24 percent from 27 percent.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

Stats NZ: Unemployment Declines As Underutilisation Rises

The seasonally adjusted unemployment rate decreased to 4.7 percent in the March 2021 quarter, continuing to fall from its recent peak of 5.2 percent in the September 2020 quarter but remaining high compared with recent years, Stats NZ said today. ... More>>

ALSO:

Digitl: The Story Behind Vodafone’s FibreX Court Ruling

Vodafone’s FibreX service was in the news this week. What is the story behind the Fair Trading Act court case? More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>

MYOB: SME Confidence In Economic Performance Still Cautious

New insights from the annual MYOB Business Monitor have shown the SME sector is still cautious about the potential for further economic recovery, with two-in-five (41%) expecting the New Zealand economy to decline this year. The latest research ... More>>