Sanford nets higher revenue in first half

By Phil Boeyen, ShareChat Business News Editor

Wednesday 17th April 2002

Fishing company Sanford (NZSE: SAN) is forecasting an improved second half after announcing a 10% rise in turnover in the first six months of the year.

Interim revenue to the end of December rose to $183 million, up from $166 million for the same period previously. Earnings before interest, tax, depreciation and abnormals rose to $39.3 million from $38.4 million.

Net profit fell slightly from $12.1 million to $11.8 million but the company points out that the previous year's result included a $3.7 million unusual gain on the sale of assets.

Sanford says increased sales of skipjack tuna and orange roughy helped to drive revenue and more than offset falls in hoki, ling, mussels and salmon.

"Orange roughy prices and volumes sold improved substantially over the previous period as the market in the United States rebounds from events of September 2001."

Foreign exchange losses decreased from $15.9 million last year to $11.5 million and the company says that, based on current exchange rates, they should continue to decline in the second six months.

Looking forward the company says it is pursuing a number of strategies to benefit from the major trends in global food and seafood industries.

"One strategy being actively pursued involves developing alliances and partnerships with other leading seafood businesses to capitalise on the changes and opportunities evolving in North America and Europe.

"To this end Sanford has recently acquired a strategic 9.4% shareholding in publicly listed Canadian seafood business, High Liner Foods. High Liner Foods produces, processes and markets fresh fish and frozen seafood products.

"This complements Sanford's existing 14.3% investment in FPI Limited . Sanford is also in discussions with a number of other potential investment partners."

Sanford says the outlook for the second half of the year is for further improvement based on continuing demand for orange roughy, seasonal increases in catches of hoki and improved catches of skipjack tuna in the Pacific.

A fully imputed interim dividend of 8 cents per share, the same as last year, has been declared.

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