King Salmon’s $7.1m loss

The impact of Covid-19 drove New Zealand King Salmon to a $7.1 million loss for the seven months to January against an $18m profit for the 12 months to June, the company said.

The South Island acquaculture company has changed to a January 31 balance date from June 30 to better reflect the business.

NZ King Salmon said its pro forma ebitda came to $10m in the seven months, compared to $25.1m in the 2020 year.

Chairman John Ryder said it was a “creditable outcome” considering the company was recovering from the strain created the pandemic.

“The full financial impact of excess inventory, caused by the pandemic, has been absorbed into these results with appropriate contingencies built in.

“Going forward, our average price will return to pre-Covid levels, however margins will still be affected by higher freight and distribution costs.

“We are seeking to increase prices globally around the middle of the calendar year with a view to recovering some of these ongoing costs.”

NZ King Salmon had come through summer in reasonable shape with sea temperatures around average.

Managing director and chief executive Grant Rosewarne expected NZ King Salmon to regain its pre-Covid momentum in the coming months.

“As a company we continue to diversify, our brands remain strong and we are highly optimistic that our plans to farm in the open ocean on the Blue Endeavour site will come to fruition later this year.

“If successful this [venture] will drive significant economic benefits to the region, eventually delivering hundreds of green jobs.”

The earliest possible harvest from the site would be mid calendar 2024.

Meanwhile, climate change would continue to impact the business.

NZ King Salmon expects to provide market guidance in mid to late 2021.

The company last year opted not to pay a dividend due to the uncertainty caused by Covid-19.