28 Feb 2019

Flat sales results in smaller profit for NZ King Salmon

10:17 am on 28 February 2019

New Zealand King Salmon Investments' first half profits are down on flat sales, but in line with its expectations.

A NZ King Salmon farm in the Tory Channel.

NZ King Salmon's half year net profit was down 4.1% to $15.1m. Photo: Supplied to RNZ

The Marlborough-based salmon farmer's net profit was down 4.1 percent to $15.1 million in the six months ended December, compared with $15.7m a year earlier.

Sales were at $87.7m, underpinned by increasing demand, improved pricing mix, with a growing export market and a favourable exchange rate.

However, sales volumes were down 13 percent with less fish available to sell.

"We expect FY19 financial performance [to be] on track with previous guidance and building on our strong FY18 results," chairman John Ryder said.

Full year underlying profit is expected to be in a range of $25m and $28.5m, which compares with last year's $26.2m and $19.5m in the past six-month period.

"Our quality portfolio in buoyant world markets including our innovations with the Ōra King TYEE programme plus our Omega Plus petfood range continue to support the company's premium branded strategy."

The company will pay an interim dividend of 2.0 cents per share.

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