Despite a drop in volumes, earnings and revenues for New Zealand King Salmon remained stable in the six months through the end of 2018, thanks to strong prices and market expansion.
The company's unaudited earnings before interest, tax, demortization and amortization (EBITDA) crept up 2 percent to NZD 24.8 million (€14.9 million/$17.0 million) year on year, while revenues matched those of the first half of 2018 at NZD 87.7 million (€52.7 million/$60 million).
Revenues remained stable thanks to increased demand, improved pricing, export market expansion and a favorable exchange rate despite sales volumes falling 13 percent year on year to 3,824 metric tons, gilled and gutted salmon.
Net profit after tax fell just slightly, by 4 percent to NZD 15.1 million (€9.1 million/$10.3 million).
“Every business has challenges and ours is no exception," said CEO Grant Rosewarne of the company's environmental challenges. "While lower salmon sales volumes were largely mitigated by value gains in our sales activities, adapting to pressing environmental changes remains a business priority moving forward."
As part of this strategy, the company continues to work with central government to relocate several low-flow sites in the Marlborough Sounds for improved environmental, social and economic outcomes as well as its initial investigations into open ocean farming, said Rosewarne.
