Sanford takes earning hit, with expected future sales pricing under pressure

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One of New Zealand’s major producers of king salmon posted a decrease in revenue and EBIT.

Integrated aquaculture and commercial fisheries company Sanford, posted its full year results for the year ended 30 September.

Revenue was EUR 267 million, a 14 per-cent decrease on 2019 (EUR 310 million). EBIT was down 41 per-cent at EUR 22 million, compared to last year’s EUR 37 million.

“Our earnings reflect the ongoing impacts of the Covid-19 pandemic on Sanford’s sales channels, primarily to foodservice,” wrote Sanford, which has been increasingly expanding and focusing into salmon farming.

It said that fourth quarter profitability was further impacted by a “lower fair value of salmon stock in water with expected future sales pricing under pressure”.

“The result this year is disappointing,and our markets continue to be challenging and difficult to predict because of the evolving Covid-19 situation. Despite this our cash collection remained satisfactory through the year and our balance sheet isstrong. We continue to assess and make changes to re-position the business to be more adaptable and match our costs to the new environment,” it wrote.