Ngai Tahu Seafoods has bounced back from a $22.8 million loss to post a $9.2 million surplus for the 2006-07 financial year. The $9.2 million earnings before interest and tax was on the back of $76 million in revenue. The previous year's loss was largely due to a $20.7 million balance sheet writedown.
Ngai Tahu Seafoods chief executive Geoff Hipkins said the turnaround was pleasing after a "tough couple of years".
"This last year was about finishing the process of rationalisation we started in 2005-06, especially reducing inventory and operating costs," he said. The company had also focused on consolidating its position in New Zealand and targeted its efforts on key products and developing niche markets.
"For example, onshore we have formed a joint venture with iwi on the Chatham Islands to process abalone [paua], kina and prime wetfish species," Hipkins said. "Offshore, the company has done a great deal of work in building up live lobster exports to China."
He said abalone and live lobster sales brought in $7.3 million and $24.4 million respectively.
"There have also been improved domestic wholesale margins as well as growth in retail sales."
Ngai Tahu Holdings group chairman Wally Stone said the turnaround was "a very satisfying one for the group".
But he warned it would be "unwise to get carried away by this result alone, impressive as it is".
He said the volatility of world financial markets carried risks for the company.