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Highlights
- NZ has a rich underwater landscape but is threatened by climate change and other land and sea-related activities.
- Sanford’s NPAT dropped 16% in FY21 compared to FY20.
- NZ King Salmon were negatively impacted due to small fish size and offsetting restrictions on harvest for 1H22.
New Zealand's fisheries are a significant source of food for recreational, economic, and commercial uses. Seas, rivers, and other natural water bodies are used for fishing, whereas aquaculture entails the breeding and rearing of fish and seafood.
However, the marine environment is being harmed by human activities on land and at sea, particularly due to climate change.
Growing pressures and demands have been placed on seas, and will continue to be imposed on oceans, endangering the biodiversity and ecological health of many marine ecosystems, including the role of fisheries.
Let’s have a look at how these 2 NZX fishing stocks are doing.
Image source: © 2021 Kalkine Media, data source- EODHD/Others
Sanford Limited (NZX:SAN)
Inshore and deepwater fisheries managing company, Sanford, announced its full-year financial results for the year ended 30 September 2021.
The Company experienced COVID-19-related consequences for another year, which led to lower profitability.
ALSO READ: Sanford (NZX:SAN) reflects COVID-19 related impacts on annual results
Sanford's NPAT fell by 16% to $16.2 million in FY21 compared to FY20. Sanford's revenue, on the other hand, increased by 4% to $489.6 million over the time. Sanford has defined strategic goals for coming year, which will restore profitability and position the company for future development.
On 30 November, Sanford was trading flat at NZ$4.88.
New Zealand King Salmon Investments Limited (NZX:NZK)
The biggest aquaculture producer of the premium King salmon species, New Zealand King Salmon’s half-year results for the 6-months ended 31 July 2021 were negatively impacted due to small fish size and offsetting limitations on the harvest.
NZK had a difficult six months, but in September 2021, it launched its Prescient aquaculture model. Moreover, the Group's top brands are now excelling at building client connections and boosting margins.
RELATED READ: Sanford & King Salmon: How are NZX fishing stocks faring?
The Group announced this month that Mr Lai Po Singh had resigned from his role as Director effective 3 November. Carol Chen has been appointed Director, who will assist in further progressing the China market.
NZK has forecasted harvest quantities in H2 of 2022 of more than 4K tonnes delivering regular premium prices.
At the time of writing, NZ King Salmon was trading flat at NZ$1.400.
Bottom Line
The fishing and aquaculture industry is likely to grow in the future with increased exports as COVID-19 restrictions are eased off.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)