Sanford Limited Reports Record Profit in FY25

Sanford ( (SARDF) ) has released its Q2 earnings. Here is a breakdown of the information Sanford presented to its investors.

Sanford Limited is a New Zealand-based company specializing in fishing and aquaculture, focusing on the farming, harvesting, processing, and marketing of seafood products. The company operates in the Wildcatch and Aquaculture sectors, with a significant presence in both local and international markets.

Sanford’s latest interim financial report for the first half of FY25 showcases a record profit, with sales revenue reaching $286 million, a 4% increase from the previous year. The net profit after tax saw a remarkable 110% rise to $34 million, and operating cash flow improved by 498% to $49.6 million, reflecting the company’s successful cost management and debt reduction strategies.

Key financial highlights include a gross margin increase to 28.2% from 24.9%, and a significant reduction in net debt from $220.5 million to $165.1 million. The salmon business showed strong performance with a 24% increase in revenue, while the mussel business nearly doubled its profitability. However, the Wildcatch sector faced a 10% decline in profitability due to reduced scampi sales and global price pressures.

Sanford’s management remains focused on cost reduction and operational efficiency, aiming to further decrease debt and enhance competitiveness. The company is also exploring growth opportunities in the mussel business and reviewing its Wildcatch operations to address industry challenges.

Looking ahead, Sanford’s management is cautiously optimistic, acknowledging potential market challenges in the second half of the year due to price pressures and seasonal fluctuations. The company is committed to maintaining a conservative approach to capital allocation and dividend policy to ensure long-term stability and growth.