Sanford (NZX:SAN) reflects COVID-19 related impacts on annual results

2 min read | November 18, 2021 04:18 PM NZDT | By Sonal

Highlights

  • COVID-19 hit Sanford’s profitability.
  • Clear strategic priorities have been set for 2022.

Sanford Limited (NZX: SAN), NZ’s largest seafood firm, released its financial result for the year ended 30 September 2021 on Wednesday.

The Company witnessed the second year of COVID-19 related impacts that resulted in reduced profitability.

Sanford reported a 16% drop in NPAT to $16.2 million in FY21 compared to FY20. However, Sanford’s revenue was up 4% to $489.6 million in the period.

Sanford’s details

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Sir Robert McLeod, Board’s Chairman, stated that with the imposition of COVID-19 lockdowns worldwide, the foodservice sector had been impacted severely where most of the seafood is consumed.

Sanford’s mussels division was the most impacted in 2021. This is because the division depends on the half-shell structure for its volume-based sales.

There has been a lag in the recovery of the Group’s mussel division. However, wild-catch and salmon divisions have started to improve as COVID-19 evolves gradually.

Supply chain dependability and costs remain demanding factors.

Bottom Line

Sanford has clear strategic priorities for the next year that will reconstruct its profitability and put it ready for future growth.  The Group is also to develop its strategy through till 2026 and will be presented in H1 2022


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