Fish processing. (Photo: Sanford)

Sealord and Sanford double their annual profit

Sealord, the second largest fishing group in New Zealand, more than doubled its annual profit in 2016, gaining higher margins thanks to increased harvest volume and better prices.

Its net profit climbed to NZD 22.9 M (USD 15.8 M) in the year ended 30 September 2016, from NZD 8.9 M (USD 6.2 M) a year earlier, according to holding company Kura's financial statements, lodged with the Companies Office.

The company's revenues increased 5.3 per cent to NZD 454.3 M (USD 314.9 M), while gross margins grew 3 per cent, the New Zealand Herald reported.

In recent years, Sealord has been reducing its workforce size and removing unprofitable divisions in order to address lower prices and a strong New Zealand dollar.

The last accounts show that the firm's wage bill fell by NZD 3.3 M (USD 2.3 M). It also points out that it sold its North Island mussel processing and marine farming interests in the financial year.

In August, Sealord announced it would invest NZD 70 M (USD 48.5 M) in a new deepwater vessel, its first purchase since 1996. The ship will be ready for 2018.

For its part, the company's rival, Sanford, also more than doubled annual profit, as a weaker currency and higher-value catch underpinned revenue gains.

It had also gone through a period of exiting unprofitable businesses, in which it implemented plans to reduce the "commodity nature" of its portfolio.

Related article:

- Sealord invests over USD 50 million in new factory vessel purchase
 

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