Sanford holds dividend steady as earnings soar

Photo / Brett Phibbs

Fishing company Sanford has maintained its interim dividend at 9c a share after reporting sharply higher earnings from a business that includes the Pacifica Seafoods mussels business purchased last November.

Earnings before interest, tax, depreciation and amortisation rose to $26 million in the six months to March 31, from $10 million in the same period last year. The $13.1 million after-tax profit compared with $5.3 million last year.

Revenue was up 23 per cent to $228 million, and excluding Pacifica the rise was 17 per cent.

The company is paying the 9c a share interim dividend on June 15.

Sanford said the profit rise was "pleasing" but it was focused on cutting its debt after the Pacifica buy.

The company also paid tribute to chairman Bruce Cole, who died on May 11 after a short illness.

Jeff Todd was elected chairman yesterday and the company said a new director would be appointed soon.

"Prices over the period have improved for most species as seafood follows the worldwide increase in commodity prices," Sanford said.

It is forecasting more improvement in profitability from higher prices despite the impact of high fuel prices and the high New Zealand dollar. "Good progress has been achieved [but we must] continue our focus on cost control, production efficiency and maximising market returns."

- NZPA