SAN
19/11/2014 16:18
FLLYR
REL: 1618 HRS Sanford Limited
FLLYR: SAN: Sanford Limited - Annual Result
Name of Listed Issuer: SANFORD LIMITED
For Full Year Ended: 30 SEPTEMBER 2014
Audited: NZ$m (millions)
CONSOLIDATED INCOME STATEMENT
Revenue: $452.424m ($462.644m) (-2.2%)
PROFIT BEFORE INCOME TAX: $31.727m ($29.440m) (+7.8%)
Less tax $9.363m ($9.040m) (+3.57%)
PROFIT AFTER TAX BUT BEFORE MINORITY INTERESTS: $22.364m ($20.400m) (+9.6%)
Minority Interest: Loss $0.066m (Profit $0.039m)
NET SURPLUS ATTRIBUTABLE TO EQUITY HOLDERS OF THE GROUP: $22.430m ($20.361m)
(+10.2%)
EARNINGS PER SHARE: 24.0cps (21.7cps)
Final dividend: 14cps (14cps)
Record date: 3 December 2014
Payment date: 10 December 2014
Imputation tax credit on final dividend: 5.4444cps
Sanford Limited is pleased to present its annual result for the year ended 30
September 2014.
Overview and Highlights
Profit for the year totalled $22.4m, 10.2% up from $20.4m last year. EBITDA
reduced by 5% from $49.3m to $46.7m. Revenue for the financial year was
$452.4m, which is slightly behind the $462.6m reported last year with highly
variable operational performance across the business.
Prudent foreign exchange management coupled with successful deepwater fishing
and aquaculture performances assisted with the net profit result.
This year has been as challenging as prior years. Although we are satisfied
with our result given the many changes the organisation faced during the
course of the year, our high dependency on commodities has once again
resulted in a low return on equity (ROE). In 2014 the ROE was 4.1% which is
well below the potential of a company dealing in natural resources that are
in good demand. As we are involved in deepwater, inshore and international
fishing operations as well as finfish and shellfish farming, Sanford is
probably one of the most diverse seafood companies globally. This diversity
has again helped to combat low commodity prices for key species like skipjack
tuna and other pelagics. However, the unpredictability of commodity prices in
an arena in which we play only a minor role, e.g. skipjack tuna, is being
addressed with priority.
We had a good year with our deepwater fleet delivering volumes in line with
our expectations across most species. Favourable market conditions around the
globe ensured stable demand for the majority of our deepwater species with
prices being under pressure only for those that are easily replaceable with
supplies originating from other fishing nations. Most deepwater species we
supply generally enable us to differentiate our product from other commonly
traded species. We do believe, however, that greater value can be obtained
in future by moving the focus from extracting resources to fulfilling
customer and consumer needs. This will reduce the dependency on prices
dictated by comparable whitefish products originating elsewhere, placing more
emphasis on custom made items "made in New Zealand".
Inshore fishing had a poor year, which was mainly driven by our inability to
sell large volumes of pelagic species. Although catches were better than
expected we were faced with a difficult market for commodity products like
blue mackerel, which are traditionally used by canners in certain countries
as a replacement for skipjack tuna when prices for this species are high.
While we were successful in creating new and rewarding markets for a variety
of species, e.g. fresh snapper, the high volume of non-value added pelagics
in our portfolio significantly outweighed those advances.
Our aquaculture business had a good year due to stable prices for Greenshell
mussels and our prominent role in the supply of this species led to a more
predictable environment marked by strong customer relationships. Our king
salmon farming activities continue to grow and serve as an excellent example
for the value we can derive from serving a high quality niche product to
discerning customers.
A continuing focus on streamlining our supply chain has led to further
decreases in cost in our processing facilities. The shift from solely being a
fishing/farming company towards being a customer focused food producer will,
however, bring about significant opportunity to create more value throughout
the supply chain, ranging from a stronger appreciation of quality to reducing
inventories of finished products.
As strong and iconic as Sanford is today, we believe we can be much more.
With a focus on enhancing shareholder returns in 2015 we are excited to
introduce our new strategy and vision to become the best seafood company in
the world. We want Sanford to be the New Zealand company of choice for
shareholders, employees and our local and global customers in the seafood
industry.
End CA:00257856 For:SAN Type:FLLYR Time:2014-11-19 16:18:40
