SAN
25/05/2015 15:47
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REL: 1547 HRS Sanford Limited
HALFYR: SAN: Sanford Limited - Interim Result Announcement
SANFORD LIMITED
SUSTAINABLE SEAFOOD
25 May 2015
News release: Sanford Reports Satisfactory Result and Marks Shift in Customer
Focus in Six Month Result
Sanford Interim Report 2015
CONSOLIDATED INCOME STATEMENT
Revenue $225.98m ($225.659m) (+0.14%)
EBITDA $33.9m ($28.7m) (+18.1%)
PROFIT BEFORE INCOME TAX: $13.335m ($16.260m) (-18.0%)
PROFIT AFTER TAX BUT BEFORE MINORITY INTERESTS: $9.563m ($11.711m) (-18.3%)
Minority Interest: Profit $0.009 (loss $0.046)
NET SURPLUS ATTRIBUTABLE TO EQUITY HOLDERS OF THE GROUP: $9.554m ($11.757m)
(-18.7%)
EARNINGS PER SHARE: 10.2cps (12.6cps)
Interim dividend: 9 cents per share
Record date: 12 June 2015
Payment date: 19 June 2015
Imputation tax credit on interim dividend: 3.5cps
Sanford Limited, New Zealand's largest commercial fishing and aquaculture
company, has recorded an 18.1% rise in its EBITDA in its interim report for
the six months ending 31 March 2015. EBITDA increased to $33.9m from $28.7m
for the same period last year. Profitability was affected by one-off
impairment charges with respect to Sanford's fleet and plant and equipment at
the Christchurch mussel processing plant. Net profit after tax for the six
months was down 18.3% from $11.7m in 2014 to $9.6m for the current half year.
Sanford CEO Volker Kuntzsch says the result is satisfactory, given the
challenging conditions faced in international markets. "In particular, in the
last three months of the period, we have seen improving results. The team
has worked really hard to lift our revenue. Initially, the period was marked
by lacklustre sales for a few months, primarily due to weak currencies and
political upheaval in some of our important export markets."
The company said sales were also impacted by reduced demand for Greenshell
mussels across many regions and the lowest commodity prices for skipjack tuna
in 5 years.
The result is supported by a strong performance in the fishing operation,
resulting from good catches and lower fuel prices. The mussel farming
operation was impacted by a price reduction following limited demand, which
has since been recovering. Demand for salmon was dominated by the domestic
market for fresh product, but the higher feed requirement by salmon stocks in
the summer months lead to increased cost during this period.
Mr Kuntzsch has been with Sanford for 18 months and believes that recent
investments into the organizational structure of the company and into
innovation will enhance performance in the medium term. "Aligning ourselves
with our customers' needs and focusing on the delivery of the newly
introduced planning and procurement functions has already delivered
encouraging returns."
"We are moving to being a food company rather than just a fishing and marine
farming company and this comes from being focused firmly on what our
customers want. Offering a growing share of our precious marine resources as
high quality fresh seafood to an increasingly discerning customer base
seeking product from sustainable sources is one of the elements that we
define as adding value."
"We think there is a shift amongst consumers from seeking convenience food to
preparing quality fresh food and for us as a business that is fantastic
news."
Volker Kuntzsch
Chief Executive Officer
The media contact for Sanford is Trish Sherson on 021 570 803 or e-mail
[email protected]
End CA:00264774 For:SAN Type:HALFYR Time:2015-05-25 15:47:06
