Results are out, looks not to fishy to me.
16 November 2016
Name of Listed Issuer: SANFORD LIMITED (SAN)
FINANCIAL RESULTS for the year ended 30 September 2016
Sanford reports 152% Improvement in Annual Net Profit With Increased Focus on Value Creation From Reduced Wildcatch
Highlights
1. Financials
• Significantly improved NPAT of 152% to $34.7m from $13.8m in F15. Operational performance improved by 85.5% with reported EBIT of $57.7m (2015: $31.1m)
• Reported EBIT, as a proportion of sales, grew from 6.9% to 12.4%, which reflects the focus on more value add, in particular fresh (non-frozen), products
2. Sales
• Revenue increased from $450.3m in 2015 to $463.5m, with sales volume down 11.1% compared to prior year. Volume was mainly impacted through discontinuation of skipjack tuna operations in the Central and Western Pacific region and limiting catches of pelagic species in line with demand
• Greater focus on domestic customer base and food service resulting in strong growth in the New Zealand market
• Product pricing was generally favourable, but mussels suffered from strong competition, underlining the focus for product diversification
3. Wild catch volume (Inshore and Deepwater)
• Lower catches in the pelagic sector (mackerels, tunas) and variable performance of the fishing fleet led to a 6.5% reduction in landings compared to prior year
• A focus on higher value species including toothfish and orange roughy and improved squid catch compensated for the reduced overall catch
4. Aquaculture (King salmon and Greenshell mussels)
• Strong domestic demand for fresh salmon enabled improved product cascade at greater operational efficiency
• Lower feedstock cost and better feed conversion rate also contributed to improved results.
• The positive salmon performance compensated the impact of El Niño producing less than desirable large mussels in the early part of the year, although mussel harvest volume increased 4.5% year on year