New Zealand King Salmon FY24 Financial Performance

New Zealand King Salmon Investments Ltd (ASX: $NZK) has reported a robust financial performance for the 12-month period ended 31 January 2024 (FY24). The company's net profit for the year surged to $28.5 million, a significant increase from $1.9 million in FY23. Additionally, the pro-forma EBITDA turned into a profit of $24.5 million, compared to an EBITDA loss of $2.7 million in the previous year. Furthermore, the mortality expense was notably reduced from $25.9 million in FY23 to $12.6 million in FY24, while revenues witnessed a 12% increase from $167 million to $187 million.

Executive Commentary on FY24 Performance and Future Plans

The Chair, Mark Dewdney, highlighted the company's turnaround and the positive impact of new farming strategies in reducing summer mortality. He also mentioned the commencement of work on the Blue Endeavor pilot as an exciting milestone. The CEO, Carl Carrington, acknowledged the challenges faced due to changes in production plans but expressed satisfaction in delivering guidance. He emphasized the completion of the monitoring and equipment ordering for the Blue Endeavour project as the focus for FY25. Both executives acknowledged the ongoing work required for sustained progress.

Summary of FY24 Results and FY25 Outlook

New Zealand King Salmon Investments Ltd achieved a remarkable turnaround in FY24, with substantial growth in net profit, improved EBITDA, and a significant reduction in mortality expense. The company's focus on optimizing existing business and the progress on the Blue Endeavour project are key highlights. Looking ahead, the Board has provided pro-forma EBITDA guidance in the range of $26 million to $32 million for FY25, indicating a positive outlook for the company's performance in the coming year. The successful receipt of resource consent for the Blue Endeavour project marks a significant milestone, reflecting the company's commitment to future growth and development.