Asian revival key to Sanford's $54m profit

By PAULA OLIVER

A rejuvenated Asian appetite for snapper and greenshell mussels has carried New Zealand's largest fishing company to a $54 million full-year profit.

Sanford managing director Eric Barratt said last night that he was happy with the 1.3 per cent increase in after-tax profit in the year to August 31, because the previous year's result had seen a massive increase to a record level.

"It's good to consolidate on that level, and it establishes us at a new level of operation," Mr Barratt said.

After a difficult start to the year, Sanford's Asian markets returned to pre-crisis levels, with strong demand for snapper, gemfish and barracuda.

Greenshell mussels enjoyed a record year, after a significant price increase and increased production from a newly completed processing plant in Bluff.

But Sanford could yet feel the worst of a falling kiwi dollar, after taking out forward contracts before the dollar fell below US50c.

"In theory you could argue that's a bad level, now that the dollar is below 40c, but who was to know that it would fall so quickly and so far?" Mr Barratt said.

"We're comfortable with the level of profits, even though it could mean they'll be lower than they would have been."

Hoki markets had proven more difficult in Europe as an Alaskan fish crept onto the market, eating into Sanford's share.

Sales revenue for the year was down 2.6 per cent to $341.9 million, but Mr Barratt said many markets were looking more positive.

He did not expect a severe effect from the Government's cuts to orange roughy quota because it was a small part of Sanford's business.

A final dividend of 12c a share will be paid on December 6, taking the full-year dividend to 20c.