Sanford expecting 46% lower profit but balance sheet good
FISHING company Sanford said it expects its net profit to fall by 46% in the year to September 30 due to the impact of Covid19, but that its balance sheet remained strong.
The company expects its net profit to come in at $22.4 million, down from $41.7 million, in the previous financial year, in part driven by a lower Patagonian toothfish catch.
Total revenue was forecast to fall by 14% to $468.8 million.
Sanford’s adjusted earnings before interest and tax (EBIT) was forecast at $38.3 million, down 41%.
The company’s
earnings reflect the ongoing impacts of the Covid19 pandemic on Sanford’s sales channels, primarily to food service, as already disclosed to the market early in September.
‘‘This result is a continuation of the sales revenue trend which we advised the market of in September,’’ it said.
However, the fourthquarter profitability was further affected by poorerthanexpected wildcatch performance in September, driven by a lowerthanexpected Patagonian toothfish catch and a lower ‘‘fair value’’ of salmon stock with expected future pricing under pressure.
‘‘The result this year is disappointing, and our markets continue to be challenging and difficult to predict because of the evolving Covid19 situation,’’ the company said.
‘‘Despite this, our cash collection remained satisfactory through the year and our balance sheet is strong.’’
‘‘We continue to assess and make changes to reposition the business to be more adaptable and match our costs to the new environment.’’
Sanford shares last traded at $5.16, down 18c from Wednesday’s close. — The New Zealand Herald