Seafood processor Sanford says sales down 15pc due to Covid-19

Sanford took a sales hit over the third quarter due to Covid-19. Photo / Supplied

Seafood company Sanford said Covid-19 dragged its third quarter sales down by 15 per cent. Volatility in global markets as a result of the pandemic was an ongoing challenge for the significant foodservice component of Sanford's business, but the company said it was making progress on the strategic changes needed to meet the new market conditions.

Chief executive Volker Kuntzsch says lockdowns around the world have had an "inevitable" effect.

"In many of our major markets, seafood is typically consumed out-of-home and the lockdowns unavoidably impact on restaurants, hotels and any eating occasions where there is a need for social distancing," he said.

The company had seen the impact in its fisheries portfolio, where commodities like squid suffered from price and volume reductions.

Hoki production had to return to a fillet block focus for retail, reversing Sanford's previous shift to higher-value fillet production for food service.

"While these steps are being taken to mitigate the ongoing impacts from Covid-19, the outlook remains challenging and short-term expectations are subdued," Kuntzsch said.

Chief financial officer Katherine Turner said Sanford's balance sheet was strong, and that there was considerable "headroom" in its borrowing facilities.

"Forecasting with certainty is always difficult in the seafood business, and Covid-19 has made that harder than usual," Turner said.

"However, we have confidence in our strategy to deliver improving results in the medium and long term," she said.

Kuntzsch said operationally the company was performing well "and all our people are highly engaged and working hard to help Sanford adjust to a new normal".

Shares in Sanford last traded at $5.70, down 15.5 per cent over the past 12 months.