Sanford says FY profit missed forecast range because of impairment on Australian quota
Sanford [NZX: SAN], New Zealand's largest listed fishing company, said its full-year profit was below forecast because of an impairment on the value of Australian quota.
Profit in the year ended Sept. 30 was about $20 million, the Auckland-based company said in a one-sentence statement to the NZX. That's below the $23 million to $25 million forecast it gave in August, which was itself a downgrade on guidance it gave earlier in the year.
"The Directors have resolved to provide for impairment of its Australian quota of $3 million with the effect that the year-end result is now likely to be approximately $20 million," the company said. Profit would have met the bottom end of its forecast range absent the charge and will now be $1 million below the $21 million earned in the previous year.
In August, Sanford cited the high costs of operating its vessels while catches fail to meet expectations in the Pacific skipjack tuna fishery and for toothfish in the remote South Georgia fishing zone. Added to that, slower growth in Marlborough mussels meant a reduced harvest, lower revenue per kilogram and increased production costs.
The announcement was made just before the close of trading on the NZX today. Shares in Sanford were up about 2 percent to $4.65.