New Zealand seafood company Sanford said it would not pay a final dividend after the impact of the Covid-19 pandemic drove its net profit down by 46 per cent to $22.3m for the year to September.
The company had already advised the market that it was in for a steep fall in earnings due to the pandemic.
Revenue dropped by 14 per cent to $468.8m.
"The business sees this decrease as directly attributable to the Covid-19 pandemic and its impact on food service globally," Sanford said.
However, the company said it had learned from the challenges and is adjusting to pandemic conditions, making the business better prepared for the year ahead, and remains confident that its longer-term strategy is the right one.
The dividend news sent Sanford's share price down 17c to $5.07.
Acting chief executive Andre Gargiulo said the decision to scrap the dividend was not taken lightly.
"It was precautionary due to the volatility in the market, which still remains," he told the Herald.
As it stands, Sanford does not have a dividend policy.
"We will look at some point of time into publishing one," he said.
"At the moment we will take some time to review, and give some feedback," he said.
Sanford said that, like many seafood companies globally, it had been reliant on food service as a sales channel, an area which has been hit hard by the lockdowns resulting from the Covid-19 pandemic response.
The company said sales into North America fell by 30 per cent compared to last year.
Acting chief executive Andre Gargiulo said recent changes to sales tactics in global markets, to facilitate more consumer-facing sales, meant Sanford had a path to increased profitability in 2021.
"While we acknowledge this is a disappointing result, we are confident that our strategy to get closer to our consumers and maximise the value of our products is the right one," Gargiulo said.
"We are adjusting to changing market conditions and are putting in place a plan to more flexibly respond to changing environments, while protecting profits through an appropriate cost structure," he said.
Sanford its balance sheet and liquidity remained robust, with a gearing ratio at 31 per cent compared to 24 per cent last year.
The board was making good progress in recruiting a new CEO, replacing Volker Kuntzsch, who left last month.
"Due to uncertainty caused by the impact of Covid-19, the ongoing asset rejuvenation programme and wish to ensure prudent cash availability, the board has taken the decision not to pay a final dividend in respect of the 2020 financial year," Sanford said.
The company has already paid a 5c dividend for the half-year, which was down from 9c in the previous corresponding period.