High prices keep NZ King Salmon on track
New Zealand King Salmon’s revenue in the first half of its 2019 financial year was almost identical to the comparable period the year before, despite a 13% reduction in volume sold.
The company said H1 revenue of NZ$87,681,000 (H1 2018: $87,688,000) reflected higher prices underpinned by solid demand, export markets expansion and a favourable exchange rate.
Sales volume of 3,824 metric tonnes (mt) of gilled and gutted salmon was down from 4,387mt in H1 2018 due to harvest seasonality and lower fish numbers carried forward from FY18.
Strong branding
Statutory net profit after tax was $15.1 million, compared with $15.7m in H1 2018.
Chairman John Ryder said: “Strong branding and market growth have led to a successful six-month period and we expect FY19 financial performance on track with previous guidance and building on our strong FY18 results.”
Chief executive Grant Rosewarne said the company’s response to environmental challenges was part of a wider commitment to a more sustainable and resilient operation.
Open ocean farming
“We continue to work closely with central government to relocate several low-flow sites in the Marlborough Sounds for improved environmental, social and economic outcomes,” said Rosewarne. “We continue to pursue our initial investigations into open ocean farming.
“Our changing climate and the need for low-carbon, high-nutrition food production models are truly global issues. We see aquaculture as a global force for good in addressing these challenges. With that vision in mind, we’ve joined the UN Global Compact’s Ocean Action Platform aiming to be stewards of the ocean and farm for the future.”
The company is conducting initial monitoring for a trial in the open sea but points out that commercial volumes are unlikely before 2027/28.
New Zealand King Salmon is the world’s largest producer of king – or chinook – salmon, providing more than half the farmed supply, and employs around 500 people. It expects to harvest around 8,000 tonnes for the whole of its current financial year, rising to 8,700 tonnes in FY2020 and 9,500 tonnes in FY2021.
