29 Aug 2018

New Zealand King Salmon beats forecast in strong result

10:38 am on 29 August 2018

New Zealand King Salmon serves up a strong result, supported by a large increase in sales.

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Photo: Supplied

The fish farmer's net profit fell 29 percent to $16.1 million, in the year to June, which reflected one-time costs associated with the fair value of its inventories.

However the profit was 14 percent better than the forecast it gave prior to listing on the NZX two years ago.

Sales rose 17.5 percent to $160.3m, supported by a 27 percent increase in sales to the key North American market, and a 43 percent increas in sales to China and South East Asia.

However, domestic sales were flat.

Chief executive Grant Rosewarne said the company was focused on the development and sales of premium brand salmon products, which rose 26 percent on the year earlier.

"This growth was possible due to an increase in average fish size, and supported with brand campaigns and increased sales resource," he said.

"We also saw the launch of Ōra King TYEE - rare salmon weighing in excess of 30 lbs (13.6 kilograms) each and positioned as an ultra-premium sustainable sushi option."

The company reaffirmed the underlying guidance for FY19 of between $25m and $28.5m, which compares with $26.2m in the year just ended.