Operating cashflow of $135.3m and disciplined capital investment of $23.3m not only maintained assets but enabled significant debt reduction of $92.1m from $185.5m to $93.4m, Mair said.
Sanford’s aquaculture businesses – salmon and mussels – exceeded expectations.
However, the wildcatch business had fallen short of last year.
“I have carried out an initial high-level review of our aquaculture businesses with a clearer understanding of what is needed to build a platform for growth,” Mair said.
Wildcatch includes Sanford’s inshore business, its deepwater fleet and factory in Timaru, and its fishing partners.
Sanford had been separating out each value stream to understand its profitability and capital requirements.
Wildcatch would be the focus for 2026.
Revenue from Sanford’s salmon business was $127.5m (2024 $107.0m) making a profit contribution of $50.4m (2024 $40.9m).
In mussels, revenue was $125.5m (2024 $134.1m) and its profit contribution was $34.8m (2024 $13.9m).
The wildcatch business delivered a 5.9% reduction in profitability to $52.4m from flat revenue.
Sanford said there had been reduced pricing on scampi, a key species for the company.
“Scampi is a high-value product and the softening price, along with demand, reflects restrained discretionary spend in a subdued Chinese economy,” the company said.
Sanford’s improved operational cashflow had enabled careful and focused capital investment and a significant amount of debt reduction.
“My intention is to position the company with a solid platform that will enable us to grow and to take advantage of investment opportunities as and when they arise,” Mair said.
Cautious dividend payments played a role in Sanford’s debt reduction goals.
“With stable profitability and steady growth, we can expect dividend growth in future years,” the company said.
In its outlook, Sanford said it had become concentrated in several large traditional markets, particularly China and the US.
“China is, and will continue to be, a key market for our company,” it said.
“The US will remain more challenging.
“We must create a broader market scope for our products then develop, maintain and enhance our interactions with key customers in those markets.”
Sanford declared a final dividend of 5.0 cents per share, unchanged, taking the full-year dividend to 10.0c per share.
Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.
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