Announcement
HALFYR: NZK: NZK 1H19 Half Year Results Announcement
08:31am
NZK
28/02/2019 08:31
HALFYR
PRICE SENSITIVE
REL: 0831 HRS New Zealand King Salmon Investments Limited
HALFYR: NZK: NZK 1H19 Half Year Results Announcement
28 February 2019
NEW ZEALAND KING SALMON ANNOUNCES POSITIVE 1H19 RESULT AND INTERIM DIVIDEND
Today, New Zealand King Salmon Investments Ltd (NZX and ASX:NZK) (the
Company) reported financial performance for the six month period ended 31
December 2018 (1H19) in line with Guidance for FY19. Highlights outlined in
the Company's first half result, include:
o Sales revenue of $87.7 million (matching the prior comparable period, 1H18)
underpinned by increasing demand, improved pricing mix, export markets
expansion and a favourable exchange rate.
o Sales volume of 3,824 metric tonnes (mt) of gilled and gutted salmon, down
13% from 4,387mt in 1H18, due to harvest seasonality and lower fish numbers
carried forward from FY18.
o Statutory Net Profit After Tax of $15.1 million, compared with $15.7
million in 1H18.
o Pro Forma Operating EBITDA of $17.3 million, compared with $19.5 million
in 1H18.
o Alan Cook appointed as COO in February 2019, bringing substantial
aquaculture and processing experience to the Company.
o Fully imputed dividend of 2.0 cents per share declared.
Recapping the results, Chairman John Ryder said "We are pleased to announce
first half results in-line with our expectations. 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. Overall, today's results demonstrate the positive market conditions
domestically and in export markets.
"Our quality portfolio in buoyant world markets including our innovations
with the Ora King TYEE programme plus our Omega Plus petfood range continue
to support the company's premium branded strategy."
New Zealand King Salmon CEO Grant Rosewarne described the Company's response
to environmental challenges as part of our wider commitment to a more
sustainable and resilient operation.
"Every business has challenges and ours is no exception. While lower salmon
sales volumes were largely mitigated by value gains in our sales activities,
adapting to pressing environmental changes remains a business priority moving
forward.
"We believe that aquaculture can play a significant role in New Zealand's
contribution towards a more sustainable global food system. Specifically, 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. 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 Board reaffirms previous guidance for the FY19 year for a Pro Forma
Operating EBITDA result of $25.0-28.5m based on known factors at this time.
As in previous years, an update on fish performance will be reported
following the key summer period. The Board is pleased to declare a fully
imputed interim dividend of 2.0 cents per share, to be paid on 22 March 2019.
Contact:
Grant Rosewarne, Managing Director and CEO, New Zealand King Salmon
Investments Ltd
email: grant.rosewarne@kingsalmon.co.nz
About New Zealand King Salmon
New Zealand King Salmon is the world's largest aquaculture producer of the
premium King salmon species. We operate under our four key brands: Ora King,
Regal, Southern Ocean, and Omega Plus, and the New Zealand King Salmon label.
We have been growing and selling salmon to consumers for more than 30 years.
Today we employ around 500 people. New Zealand investors make up a
significant percentage of the ownership of NZ King Salmon, and the
communities of Marlborough, Nelson and Tasman are well represented with
around 400 of the approximately 2,800 shareholders being from the Top of the
South.
More information can be found at www.kingsalmon.co.nz
End CA:00331235 For:NZK Type:HALFYR Time:2019-02-28 08:31:21
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