Still carrying the burden of last summer's fish mortality event, New Zealand King Salmon's full-year financial results fog an overall upturn for the company, with profits finally nudging into the black thanks, in part, to the implementation of new farming strategies.
Earnings saw significant recovery, rocketing to NZD 1.9 million (€1.1 million/$1.2 million), from a net loss of NZD 73.2 million (€41.9 million/$45.7 million) in the 2022 financial year.
While sales volumes fell 24 percent to 5,837 metric tons, higher prices meant revenue largely held up, slipping just 4 percent to NZD 167.1 million (€95.7 million/$104.3 million).
“I am pleased to say that after a particularly difficult period, our results have improved," Chairman John Ryder said of the results, crediting "several changes across the business, including the excellent work done by our aquaculture team in executing our new farming strategies over summer."
The altered aquaculture model involves moving fish from warmwater sites into higher-flow areas.
The shift is designed to avoid the devastating impacts of New Zealand's rising summer water temperatures, which have over the last few years caused high mortalities in pre-harvest fish.
Ryder said the company is seeing the benefit of new farming strategies in the current summer period (Dec. 1 – Mar. 22) with mortality-associated costs declining from NZD 13.5 million (€7.7 million/$8.4 million) to NZD 2 million (€1.1 million/$1.2 million).
In a supplementary strategy, New Zealand King Salmon implemented a seasonal harvest, whereby it harvests smaller fish as additional volume prior to the summer months.
“First and foremost, we have focused on the health of our fish and the right-sizing of the business," acting CEO Graeme Tregidga said. "We are making good progress and we acknowledge we have much more work to do."
The company received news during the year that its Blue Endeavour resource consent application to farm 7 kilometers offshore has been approved by commissioners. There are two appeals that the company hopes to mediate to a successful conclusion, said Tregidga.
The New Zealand King Salmon board is providing pro-forma EBITDA guidance in a range of NZD 21 million (€12.0 million/$13.1 million) to NZD 25 million (€14.3 million/$15.6 million) for the 2024 financial year.
The company gave a guidance of 6,600 metric tons of harvest for 2024.
Read more
- 'Costs, costs and costs': Seas are still choppy, but New Zealand seafood giant Sanford is positive its 'realignment' will make for smoother sailing
- There is a new ranking of the world's 15 largest farmed salmon producers
- The armed services, liquor and the law: Sealord's CEO tried, and failed, to stay out of seafood
