Wildcatch and crayfish quota net good result

Sanford, New Zealand’s largest seafood company, posted a 244 per cent per cent lift in annual net earnings but said its profitability was still below pre-covid levels.

The company resumed paying a dividend — at 10 cents per share — after a two-year hiatus.

Sales revenue came to $531.9 million, up 8.6 per cent from the previous September year. Sanford’s net profit was $55.8m, up from $16.26m, but assisted by the sale of crayfish quota in April. Adjusted earnings before interest and tax for 2022 were $40.2m, up 72.5 per cent on the 2021 number, but down on pre-covid levels of around $60m.

Chief executive Peter Reidie said the result reflected a careful approach.

“We needed to ensure we were in the right position to take advantage of lifting global demand. We have done that by being careful about our spending and very focused on our relationships in the diverse global markets we sell to.

“Now that we are able to travel again, we are spending more time with the people who buy our seafood and we have seen up close their enthusiasm for the quality of our products,” he said. “We have not yet got back to our pre-covid levels of profitability, but we have clearly turned the corner and it is pleasing to be growing and paying a dividend again.”

Sanford’s wildcatch division was a strong performer, with sales revenues up 8.8 per cent, and its profit contribution up 62.3 per cent. “Deepwater has been the stand-out segment this year, although our inshore business has not been performing to expectations and, as part of our wider strategy, we are looking to change that in the year ahead.”

The mussels business suffered somewhat from the tight labour market, with its sales volumes down 4.4 per cent and profit contribution of $0.4m (versus $0.8m in 2021) also hurt by longer term contracts set when pricing was under pressure.

Salmon was the first division to recover from post-covid lockdown impacts on flat volumes with growing revenue and an increase in its profit contribution of 20.6 per cent.