Changed farming model had resulted in larger fish.
On Wednesday, New Zealand King Salmon gave its shareholders an early Christmas present, in the form of upgraded earnings.
The company had previously predicted NZ$8 million – NZ$10 million in FY22 earnings, but it’s bumped that up to NZ$10.5 million – NZ$12.5 million.
In a brief statement to shareholders, the company noted trading conditions were challenging with elevated freight costs, inflationary pressure in raw materials and COVID restrictions on end customers (such as restaurants).
Despite these issues, the company’s net financial performance didn’t suffer. New Zealand King Salmon put that down to its changed farming model had resulted in improved fish sizes – reaping a greater premium.
According to Stockhead.com, the announcement failed to excite the market with shares failing to move and sitting on a 13 per cent decline in 2021.
