Six months sales volumes were almost identical to the previous year.
New Zealand King Salmon posted its financial performance for the six month period ended 31 December
Revenue was NZD 82.4 million, down from NZD 84.2 million in the first half of 2020, reflecting lower average pricing. Operating EBITDA was NZD 10.5 million, compared with NZD 16.5 million in the year before.
The company said that mitigation strategies include a global rebalancing of sales towards retail and the prioritisation of premium customer opportunities. The salmon farmer is also clearing excess inventory with retail price promotions and selective foodservice sales, which impacted margins but did improve cashflow.
“Despite a challenging year with the Covid-19 pandemic still affecting our business, sales volumes in the six months were almost identical to the previous year. This result is encouraging considering the ongoing restrictions on foodservice, particularly in the US and Europe,” said Chairman John Ryder.
“Re-establishing our global sales incurred higher costs with expensive air freight being a significant factor,” he added.
Ryder added that in addition to premium branded sales recovering, the company believes it has “sufficient indications of positive demand to ensure clearance of all surplus fish by around mid calender year 21.”
New Zealand King Salmon CEO Grant Rosewarne acknowledged it had been a tough period. “Necessary changes to our sales strategies have impacted profitability and this has increased our determination to build resilience through channel, category and geographic diversity. Core sales have recovered better than expected – now we need to rebuild value,” said Rosewarne.