Financial Performance Overview

New Zealand King Salmon Investments Ltd (NZK) has released its financial results for the six-month period ended 31 July 2024 (1HY25). The company reported a net profit of $6.0 million for 1HY25, down from $10.6 million in 1HY24. Additionally, the pro-forma EBITDA stood at $13.5 million, compared to $10.7 million in the previous year. Sales volumes and revenues also experienced growth, with sales volumes increasing by 5% and revenues by 11% from the same period last year. However, the mortality cost saw an increase from $7.8 million to $8.5 million in 1HY25. The company has revised its EBITDA guidance range to $26 million - $30 million, down from the original range of $26 million - $32 million.

Executive Commentary

The half year result for the period ended July 2024 is underpinned by the continued steady performance of our 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. Looking forward, we are revising our full year harvest downwards to 6,800MT due to elevated levels of early runting. 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. We are making steady progress in developing our presence in China. We are focused on establishing a premium position for our Regal brand in this market through partnering with premium customers across multi-channels. Planning for the pilot trial of Blue Endeavour is well underway, with the ordering of two pens and associated mooring infrastructure which will grow up to 500MT at the Blue Endeavour site. The first fish for this pilot farm are currently growing at our Tentburn facility. We anticipate they will be relocated to our nursery farm in Pelorus Sounds around April 2025, and then to Blue Endeavour around October 2025. I express gratitude for the efforts of all our team members who are committed to help our company create a healthier world. I thank our customers and distribution partners for their continued support - together we create memorable culinary experiences for consumers the world over.

Summary and Outlook

New Zealand King Salmon Investments Ltd has reported a 1HY25 net profit of $6.0 million, reflecting a decrease from the previous year. The company's pro-forma EBITDA also showed an increase to $13.5 million. Despite the positive growth in sales volumes and revenues, the mortality cost saw an increase. The company has revised its EBITDA guidance range to $26 million - $30 million. Looking ahead, the company is revising its full year harvest downwards to 6,800MT due to elevated levels of early runting, and is exploring options to address this challenge. Additionally, the company is focused on developing its presence in China and planning for the pilot trial of Blue Endeavour, which is expected to be a milestone achievement. The Board is cautiously optimistic about the future and expresses gratitude to the team members, customers, and distribution partners for their continued support.