NZ King Salmon’s net profit up 59 per cent on the previous year: “I’m proud to say we have adapted to the crisis”

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The world’s biggest producer of premium king salmon, NZ King Salmon, reports its financial results for the 12 months ended 30 June (FY20).

In a press release NZ King Salmon stated that it delivered strong performance with operating EBITDA of $25.1 million (within guidance), despite the challenges of Covid-19 and a drop in harvest volume.

Key financial highlights include:

• Sales volumes of 6,331mt, down 16% on FY19.
• Revenue of $155.3m, down 10% on FY19.
• Net profit of $18.0m, up 59% on FY19.
• Strong pricing achieved of $24.54/kg, up 7% on FY19.

“Covid-19 has certainly tested our resilience with sales revenue dropping by 50% during Level 4 lockdown, but I’m proud to say we have adapted to the crisis and, with the aid of the Government’s wage subsidy, been able to keep all 550 team members employed”, said CEO Grant Rosewarne.

“Trading is currently around 20 per cent below pre-Covid levels but there are encouraging signs, particularly in the US, despite this key market being hit so hard by the virus,” he added.

Rosewarne sees bright times ahead despite the challenging times.

“Our Blue Endeavour application to farm in the Cook Strait, 7kms north of Cape Lambert, is progressing well with a hearing expected by the end of the year. We expect the result of the application to be confirmed by mid CY2021, and assuming a positive outcome, first harvest expected in Q4 of CY2023.

“If granted there will be a significant economic impact to the region eventually delivering 300 jobs to the Top of the South,” he said.

This summer Chief Operating Officer Alan Cook decided to leave the company. With the departure of Cook, the company has made a decision to split the role to allow more focus on aquaculture and processing operations respectively.

“We are pleased to announce the internal promotion of Grant Lovell to the new role of General Manager Aquaculture, bringing over 20 years’ experience farming the King salmon species. Further announcements on our processing operations will be made in due course,” the company wrote.

Due to uncertainty caused by the impact of Covid-19, higher levels of inventory and ensuring prudent cash availability, the board of NZ King Salmon has decided not to pay a final dividend in respect of the FY20 year. The payment of dividends will be reviewed next year.