By RNZ

Fishing company Sanford has more than doubled its half-year profit on the back of good returns for its salmon farming operation.

Key numbers for the six months ended March compared with a year ago:

• Net profit $34m vs $16.2m
• Revenue $286m vs $276m
• Cashflow $49.6m vs $8.3m
• Net debt $165.1m vs $220.5m
• Interim dividend 5 cents per share vs 5 cents per share

Sanford’s result was its best in a decade, with revenue rising modestly, margins improving, and a strong increase in cash flow.

“Our improvement has been supported by an expected excellent performance from the salmon business [and] an improving mussel result despite challenges facing our wildcatch fleet,” managing director David Mair said.

He said the improvement in the company’s performance, as well as tight control on spending, had allowed it to cut its debt level by a quarter.

Salmon sales improved and were timed to make the most of US Thanksgiving and Chinese New Year, while steps have been taken to control fish mortality.

Mussels were also a strongly improving business, with revenue rising after the company closed its own processing plant in Tauranga and contracted to a third-party processor, although it said it did not expect the second half to be as strong as the first.

The firm’s open ocean fishing caught less but still managed a slight revenue rise, but expected pressure on global fish prices to dampen earnings in the second half.

Sanford’s chair, Sir Rob McLeod, said the first half result was a “job well done”, but did not expect as strong a second half because of price pressures and seasonal volumes.

- RNZ