Sealord lifts annual net profit 31%

Friday 28th December 2018

The Sealord Group lifted annual net profit 31 percent after it shed a loss-making venture and as earnings from continuing operations climbed 11.4 percent.

New Zealand’s second-largest fishing company reported a $24.3 million net profit for the year ended September, up from $18.5 million the previous year.

The year-earlier result for Sealord, which is half-and-half owned by iwi vehicle Moana New Zealand and Japan-based Nippon Suisan Kaisha, or Nissui, had been dragged down by a $3.2 million net loss from its British-based Sealord Caistor processing business that it sold to Nissui from April 1 last year. Excluding that loss, Sealord’s result was 11.4 percent higher than in the previous year.

Another factor in the improved profit was a 2.7 percent fall in administrative expenses.

Moana says in a statement that Sealord lifted “operational performances both at sea and onshore processing despite facing strong headwinds as well as in-market activation” and has yet to respond to BusinessDesk queries about those headwinds or what “in-market activation” is.

Moana itself reported an 11 percent increase in net profit to $21.4 million for the year ended Sept 30.

“The year has not been without its challenges, with further cuts to the total allowable commercial catches of fin fish and wild paua, high mortalities in the Blue Abalone farm through high water temperature as well as a tough year on sales,” Moana says.

Sanford, New Zealand’s largest fishing company, also reported on negative impacts on both fin fish and aquaculture of abnormally high summer water temperatures as did New Zealand King Salmon at its farms in the Marlborough Sounds.

“However, Moana New Zealand Pacific Oysters had a particularly good year as overseas customers recognise the high quality of Moana New Zealand’s oysters and are enjoying the benefits and consistency of year-round supply made possible through its hatchery farming practices,” the company says.

It also reports a strong year for its Port Nicholson Fisheries, with both lobster catches and prices improving.

Moana says it has declared an $8.6 million dividend which its 58 iwi will share in respectively.

“This brings the total dividends to its shareholders since Moana New Zealand’s inception in 2004 to $95.1 million, including the special distribution of $30 million in 2012.”

(BusinessDesk)

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