New Zealand King Salmon half-year profit drops to $6 million

Variable salmon sizes have impacted consumer confidence and sales. Photo / 123RF

By RNZ

New Zealand King Salmon’s half-year profit is down as a result of more fish dying and variability in fish size hitting consumer confidence.

Key numbers for the six months ended July compared with a year ago:

• Net profit: $6 million v $10.6m
• Revenue: $101.7m v $91.6m
• Mortality cost: $8.5m v $7.8m
• No dividend v no dividend

Chairman Mark Dewdney said the solid first-half result was underpinned by the steady performance of the company’s new fish farming approach.

“This gives us further confidence that we will be able to deliver strong aquaculture outcomes again this summer.

“Sales have held up well across all markets and channels, despite global cost of living pressures.

“We are happy with our solid first-half result.”

Chief executive Carl Carrington said salmon losses caused by fish failing to adapt to seawater hit profit.

“We are revising our full-year harvest downwards to 6,800MT due to elevated levels of early runting [fish failing to adapt to seawater].

“Our aquaculture team is working closely with experts to address this challenge.

“Initial trials of mitigants are looking promising, and we are assessing options for pilot trials of freshwater recirculated aquaculture systems (RAS), which we believe may also improve fish outcomes when adapting to seawater.”

Variable fish sizes also impacted consumer confidence and sales, but the company said work to improve size consistency has helped turn that around.

Carrington said planning for the Blue Endeavour pilot - the country’s first open-ocean salmon farm - is well under way, with fish set to be released there in late 2025.

He said it should bolster the company’s growth.

- RNZ