Fish processing plant. (Photo: Sealord)

Sealord profits plummet due to falling sales

NEW ZEALAND
Tuesday, January 26, 2016, 23:20 (GMT + 9)

Sealord's annual profit saw a 62 per cent reduction compared to the previous year as a result of falling sales due to low world prices.

The company’s net profit fell to NZD 10.1 million (USD 6.5 million) in the year ended 30 September, from NZD 26.9 million (USD 17.4 million) registered a year earlier.

Sealord sales went down 4.3 per cent yoy to NZD 431 million (USD 279.5 million).

In addition, the company informed a NZD 2 million (USD 1.3 million) impairment charge on the company's investments, including a write-down of the value of its holding in North Island Mussels.

The seafood company had bought North Island Mussels out of receivership in partnership with Sanford in 2012. Now, it sold its half of the company to Japanese firm Cedenco, while Sanford kept the other half, NZ Herald informed.

Chief executive Steve Yung explained, "It has been a challenging year with a poor crop of mussels, softening global white fish pricing in the last quarter and vessel breakdowns, leading to a below expectation profit.

"Our fishing capacity was restricted due to vessels being off the water during our peak season, which reduced both sales and profitability," he added.

Sealord started working with rival seafood company Sanford in 2015, sending out a vessel to catch orange roughy and sharing the catch and costs.

"We are now seeing the positive impact of the changes we made to the wetfish factory early in 2015, and we are optimistic about the continued growth of our fresh fish business. However, we do have to continue to adapt to manage the ongoing challenge of rising costs, globally flat white fish pricing and other competitive pressures," Yung concluded.

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