Sanford Limited has reported a solid recovery in the first half of its 2022 financial year, with an Adjusted EBIT of $19.2 million till 31 March. This represents a 79.4% increase in Adjusted EBIT from the same period last year ($10.7 million). The total revenue was $270.9 million for the period, a 16.0% increase on the same period in 2021 ($233.5 million).
The company has listed as its highlights the profit contribution from Sanford's wild-catch division, which is up 108.4% versus the prior comparable period. Also, the maintenance of salmon profitability through increasing revenues by 35.9%. This compensates for an additional cost in feed, freight, and increased investment. This minimizes a minor increase in mortality due to warmer water temperatures.
In addition, Sanford's balance sheet keeps strong, with net debt at $175.6 million with around $90 million in
headroom with current banking facilities. Further, operating cashflows of $35.8 million versus $4.5 million for the same period last year have significantly improved.
CEO Peter Reidie said: "The uplift in EBIT and revenue is satisfying. We are pleased we have been in a good position to take advantage of the post-Covid recovery in many of our international markets." Although, he advised: "Now the challenges we face have shifted from demand to supply. Covid-19 continues to make its presence felt in New Zealand."
On the other side, he concluded: "The good news is that our plans to minimize the impact on fishing, farming and production are paying off. We have a 100% vaccinated workforce. We are using Rapid Antigen Testing at the majority of sites, including before entry to our vessels."