Huon nets record profit

HUON Aquaculture has pulled in a monster, with a bumper fish harvest helping propel the company to a record net profit after tax of $35.4 million for the latest financial year.

Huon Aquaculture managing director Peter Bender said a 23 per cent increase in turnover to $317 million had come after a 25 per cent increase in production volumes.

“Importantly, this was achieved in the face of extremely chal- lenging operational conditions,” he said.

The company, which suffered fish losses in a major storm in May, anticipates a lower harvest volume of 20,000 tonnes in the present financial year.

Mr Bender said the sustained strength of the salmon price locally and internationally had also contributed to the $6.6 million increase in after-tax profit compared with last year.

“Macro trends point to the need for continued growth to meet robust demand,” he said.

“With this in mind, we continued to invest for the future in 2018 with our construction of the Whale Point Salmon Nursery and new fortress pens at Storm Bay, and will continue to do so in the current financial year.”

“Huon is well placed for continued sustainable growth through ongoing investment in infrastructure and expanded capacity.”

Mr Bender said a four-year strategy of investment, including $87 million in the latest financial year, had paid off.

However, statutory net profit after tax decreased 37 per cent, driven by a decline in the Fair Value Adjustment of biological assets. Huon reported that average harvest weights improved marginally as the record average fish weight in the first half was offset by poor fish growth in the second half because of elevated water temperatures from a long, hot summer.

A final dividend of 5 cents a share was declared. Huon shares closed at $4.72 on Tuesday, a dividend yield of 2.12 per cent.

FAIRFAX Media has tumbled into the red after taking a series of writedowns and forking out for restructuring and redundancy costs.

In what were likely the last full-year results under its own banner, the struggling publishing company yesterday reported a net loss for the year to June of $63.8 million. That compares with a net profit a year ago of $83.9 million.

Revenue at the group, which also has investments in radio, streaming and digital advertising businesses, fell 2.8 per cent to $1.69 billion.

Fairfax is due to lose its name later this year after directors backed a $2.16 billion buyout offer from Nine Entertainment last month.

Pushing the media company into a loss were significant items totalling $188.7 million. These included restructuring and redundancy costs as well as writedowns across the value of its regional publishing business Australian Community Media (owner of the Examiner and the Advocate in Tasmania) and its New Zealand print and digital business Stuff. Excluding significant items, its profit was $124.9 million, down 12.4 per cent.

Chief executive Greg Hywood nonetheless said Fairfax was performing well and the company was in a strong position for a new phase.

“We have addressed legacy cost issues to give our business time to adjust to the structural change it confronted,” he said.

Revenue fell 6.1 per cent at metro newspapers The Age, Sydney Morning Herald and Australian Financial Review. Regional newspapers experienced “continuing softness”.

Nine has raised the possibility of selling some of Fairfax’s non-core assets such as its New Zealand company and regional newspapers.