Photo: Supplied / Sanford
Seafood company Sanford has made a strong full-year profit with revenue up 5 percent, but says prices are under pressure with a need for increased cost controls.
Net profit for the year ended September was up 96 percent to $19.7 million with revenue of $582.9m.
"A 5 percent increase in overall revenue, combined with a team focus on selling through aged inventory (orange roughy) and a concerted effort to expedite cash collection, positively led to cash flow improvements," managing director David Mair said.
Underlying profit rose 75 percent to a record $54.3m, with revenue growth of 5 percent to $582.9m and a 78 percent increase operating cash flow.
"While there have been strong prices for most of FY24, we anticipate there will be price pressure on some species, particularly products to China in FY25," Mair said.
"Productivity plans are needed to mitigate increasing costs such as fuel, feed, freight, wages and salaries."
A critical review of assets was undertaken in the second half of the year resulting in a net $19.9m impairment of North Island Mussels for the financial year, he said.
The company anticipated increasing price pressure on some species, particularly on products for sale to China in the current 2025 financial year.
Mair said productivity plans were needed to mitigate increasing costs such as fuel, feed, freight, wages and salaries.
"There is a need to review every process and commit to continuous improvement to mitigate further cost increases.
"My objective is to simplify and optimise standardised business processes and tools, enabling more cost-effective outcomes, access to more insightful information, a more secure environment and ultimately better outcomes for our customers and our people."
However, the cost reductions were not expected to flow through the books until the 2026 financial year.
Sanford chair Sir Rob Mcleod said the group would continue to review operations and strategy.
" I want to stress that the entire Board is committed to the primary objective of maximising total shareholder return, measured by share price and dividend performance.
The company will pay a full year dividend of 10c a share, which compared with 12c the year earlier.
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