Cost attributed to mortalities for the farmer drops 65 percent.
New Zealand King Salmon has bounced back to profitability, reporting a net profit of NZD 10.6 million (€5.8 million) for the six months ending July 31, thanks to new farming techniques that dramatically reduced fish mortality rates.
The results marked a significant turnaround for the company, which suffered a NZD 24.5 million (€13.6 million) loss in the same period last year.
Read more: CEO of New Zealand King Salmon resigns
Revenues for the company rose to NZD 91.6 million (€51 million), up from NZD 80 million (€45 million) a year ago. Most notably, the cost attributed to fish mortality dropped from NZD 22.3 million (€12.4 million) to NZD 7.8 million (€4.3 million), a fall of 65 percent, according to the company’s Chairman, Mark Dewdney.
“This is a strong endorsement of our new farming strategies aimed at reducing mortality, as well as our focus on operational excellence in processing and sales,” Dewdney said.
Carl Carrington, the recently appointed CEO, indicated that while the company had made significant strides over the past year, challenges remained.
The company did not declare a dividend, maintaining the same policy as the prior year.
New Zealand King Salmon has been grappling with higher fish mortality rates, largely attributed to warming waters linked to climate change. However, the company recently secured approval from the Marlborough District Council to expand its operations into cooler waters in the Cook Straits, overcoming earlier objections.
The move is likely to further bolster the company’s resilience against climate-related challenges.
