Sanford expects profit to double

Photo / Brett Phibbs

Seafood exporter Sanford says it expects net profit for the six months to March 31 to be more than double at about $13 million compared with the previous corresponding period.

In a statement to the NZX, the company said its earnings before interest, tax, depreciation and amortisation, were likely to be about $26 million compared with $10 million in the previous corresponding period.

Revenue for the period was $228 million, up 23 per cent. Excluding sales resulting from the Pacifica Seafoods mussel business acquisition on December 1, 2010, sales were up by 17 per cent.

"While volume increases of skipjack tuna, hoki and toothfish accounted for some of the increase, sale values for most species increased over last year," Sanford said.

"Average greenshell mussel returns improved significantly over the poor prices achieved in the same period last year," the company said.

Mussel volumes were lower as the Havelock plant was closed for upgrading for much of the period while processing at the former Pacifica plant in Christchurch was disrupted briefly by the February earthquake. Production volumes at both facilities would be increased in the second half of the year, the company said.

Sanford's share price rallied by 70c (14.7 per cent) from March 14 to April 8, prompting a "please explain" inquiry from the NZX last week. Sanford's response then was to say that there had been renewed interest in its shares and that the company was benefiting from positive trends in commodity market prices.

The company's shares closed steady yesterday at $5.65, its highest point in a year and clear of its low point for the period of $3.86. Full details of Sanford's interim result are due on May 25.