NZ King Salmon: “One of the most challenging periods I have experienced in my business career”

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Trading is currently around 20 per-cent below pre-COVID levels.

NZ King Salmon posted its full-year financial results for the 12 months ended 30 June.

The company’s revenue dipped to NZD 155 million (EUR 87 million), down 10 per-cent compared to last year. EBIT dropped by 10 per-cent to NZD 17 million (EUR 9.5 million).

Sales volumes were down 16 per-cent on FY19.

At one point, revenue dropped by 50 per-cent during lockdown. The salmon farmer received NZD 3.7 million (EUR 2 million) for 539 workers from the wage subsidy to help it through the disruption of Covid-19.

Chairman John Ryder spoke of resilience in the face of the pandemic: “This has been one of the most challenging periods I have experienced in my business career. I want to take this opportunity to thank the team members who have seen us through this difficult Covid-19 period. They have all adapted to the challenges that have been thrown at them.“In light of these pressures, we are proud to have achieved this result. Our strong performance was a sound base as we entered lockdown in March.”

Managing Director and CEO Grant Rosewarne said: “Covid-19 has certainly tested our resilience with sales revenue dropping by 50 per-cent 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.

“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.

NZ King Salmon share price (listed on the NZX and ASX). GRAPH: NZ King Salmon

Rosewarne thanked the government for “re-establishing market access for exporters like us to continue supplying our premium food and beverage to markets around the world. With around half of our volume sent to international markets, consistent access to cargo routes is critical to business sustainability.”

Harvest for FY21 and FY22 has increased, forecast at 8,500 tonnes, due to slowing of harvest in 2020.