Fishing company Sanford has suffered another profit fall because of the Covid-19 pandemic, but is seeing signs of recovery.
Sanford's wildcatch revenue is up two percent for the year, but prices are still below pre-pandemic levels. Photo: Supplied / Sanford
Key numbers for the year ended September vs year ago:
- Net profit: $16.2m vs $19.4m
- Revenue: $489.6m vs $469m
- Catch/harvest volumes down eight percent
- Sales volumes up seven percent
- Dividends still suspended
Sanford chief executive Peter Reidie said the business had continued to suffer the effects of Covid-19 on the global food service sector, which was a key sales outlet.
"We have managed what we could control in 2021. The overall result is disappointing however we feel positive about some aspects of the past year."
"We continued to deliver operationally through the pandemic, we managed net debt ... and we reduced inventory levels."
When the pandemic first hit the company redirected sales towards retail consumers.
Reidie said in the second half of the year there were signs of recovery in parts of the business as international demand improved, with better performance for its wildcatch and salmon divisions, but a slower recovery for mussels.
Wildcatch revenue was up two percent for the year, but prices were still below pre-pandemic levels; salmon had revenue growth of more than 30 percent as it was forced to sell off frozen stock, and mussels revenue fell 16 percent.
Reidie said Sanford expected a gradual recovery in volumes and prices as the world market opened up and demand returned.
He said its strategy for the near term was to rebuild mussel profitability, expand wildcatch sales opportunities, and bolster the profitability of its salmon farming business.
"We see continuing recovery in all divisions as the world reopens and demand returns, but we do not discount ongoing Covid-19 related risks such as further supply chain disruption," Reidie said, adding the company had agreed a two-year deal with the Kotahi logistics network for freighting its frozen product.
Iwi investor Ngāi Tahu has increased its stake in Sanford to 19.9 percent, which the Sanford board called a positive development.
The board continued the suspension of dividends as a "prudent" move, but said it would start paying them again as soon as feasible.