NZK - NZ King Salmon Investments Limited FY24 Results

Wednesday 27th March 2024

NZK – New Zealand King Salmon Investments Limited has published its financial result for the year ended 31 January 2024.

Please find the following materials attached:

1. NZK FY24 Results Announcement

2. NZK NZX Results Template

3. NZK FY24 Annual Report

4. NZK FY24 Investor Presentation

New Zealand King Salmon Investments Ltd (NZX & ASX: NZK) reports its financial performance for the 12 month period ended 31 January 2024 (FY24). Key points include:

• FY24 net profit for the year of $28.5 million, compared to a net profit for the year of $1.9 million in FY23.

• FY24 pro-forma EBITDA was a profit of $24.5 million, compared to an EBITDA loss of $2.7 million in FY23.

• Mortality expense reduced from $25.9m in FY23 to $12.6m in FY24.

• Revenues increased from $167 million in FY23 to $187 million in FY24 (an increase of 12%).

New Zealand King Salmon Chair Mark Dewdney said: “The second half of the year has seen a continuation of our turnaround which started in FY23. Our new farming strategies have again assisted in reducing summer mortality, and we are continually looking at other ways to optimise our existing business. We are about to commence work on the Blue Endeavor pilot which is an exciting milestone. Although the full-year result is pleasing, and we have been able to deliver on the commitments the Company made during the FY22 rights issue, there is more work to be done.”

New Zealand King Salmon Chief Executive Officer, Carl Carrington, said: “It's pleasing to deliver guidance, albeit the year ended slightly weaker than our aspirations. As a result of the changes to our production plans in FY22, we were aware we would have a period of smaller fish in the last quarter of FY24. Unfortunately, the size of the fish did create some challenges with export markets. The good news is we are now through this period and are back to our normal size curve both now and in our future production plans.”

Acknowledging the above, Carl noted, “We acknowledge we have had some challenges over the last couple of years and now we are coming out the other side I really want to thank our loyal customers and wider stakeholders who support what we do, and as Mark mentioned, also acknowledge we have more work to do.”

In late February the Company also received our resource consent for the Blue Endeavour open Ocean farm (7km north of Cape Lambert, in Cook Strait). This process has taken over 9 years, and millions of dollars that could have been utilised elsewhere. Carl noted “It’s great to finally have the consent, and we can now focus on the next steps for the Blue Endeavour project. The focus for FY25 is to complete the monitoring (as required by the consent) and to order the equipment for a pilot farm.”

The Board is providing pro-forma EBITDA guidance in a range of $26m - $32m for FY25.

Comments from our readers

No comments yet