Thursday, March 1, 2018

02/03/2018: New Zealand King Salmon declares profit after tax, up 81 percent

A combination of strong global demand and a boost in volume available has helped New Zealand King Salmon Investments Ltd (NZX and ASX:NZK) deliver a record first-half profit result

Zealand King Salmon Investments Ltd Chairman, John Ryder said, “The Company experienced strong demand for its premium King salmon products over the six month period. Favourable growing conditions during the FY2017 year allowed us to deliver additional volume to satisfy the demand. However, the situation has now become more challenging. The extraordinarily hot summer has impacted the survival rates of our King salmon, and this will be a principal factor behind an anticipated reduction in profits for the second half”.

The Company continues to execute on its premium branded strategy, said Managing Director and CEO Grant Rosewarne. “In addition to achieving strong growth in sales volumes, we have also made significant gains in the average selling price of our salmon. This mainly reflects increased sales of Ōra King whole salmon, but also represents our focus on the right mix of product and customer. A nationwide advertising campaign for Regal coupled with new product launches also positions us well for future sales of our premium branded retail products. We’re confident in the strong foundation we’re building for the long-term performance of the Company.”

“Our aquaculture team has been actively preparing the farms in anticipation of the warmer summer months, however this year, water temperatures have been well above-average. Our recently-commissioned higher-flow sites have lessened the impact of the sustained heat, although, like many other farmers on land and in the sea, we have had associated performance and survival challenges. As a result, growth in sales volumes will be impacted during the second half of the financial year and into FY2019F. We’ll report in more detail once the summer period is over as we did last year, including an update on our progress towards a long term solution to combat the risk of increasing sea temperatures.”

New Zealand King Salmon has declared a fully imputed final dividend of 2.0 cents per share to be paid on 23 March 2018.

Visit the New Zealand King Salmon website, HERE.

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