‘Disappointment’ as SeaDragon losses expected to double

Perpetual underperformer SeaDragon is warning its full-year operating loss could be more than double the guidance it gave in June as it struggles to meet new European product certification requirements for refined tuna oil used in infant formula.

“It is extremely disappointing that we continue to face significant complex certification and production specification issues across our supply chain,” chairman Colin Groves said in a statement to the NZX. “Although we have overcome many issues the fact remains that we are not in a position to satisfy the global demand into this region.”

Normalised earnings before interest, tax, depreciation and amortisation for the March year are now forecast to show an operating loss of between $4.8 million and $5m, compared with $2m to $2.8m loss range given in guidance on June 8.

Revenue of between $6m and $6.9m is now forecast for the full year, compared with June guidance of $10m and $14m.

The loss before tax, previously flagged at between $3.6m and $4.55m, is now forecast at between $6.4m and $6.6m

For the half-year to September 30, which the company will formally announce later this month, a normalised ebitda loss of $2.5m is anticipated, compared to a $2.2m loss a year earlier.

Losses before tax will widen to $3.4m, from $2.7m last year, after revenue declined to $2.3m from $2.4m a year earlier.