Full Year 2025 New Zealand King Salmon Investments Ltd Earnings Call Transcript
Key Points
- New Zealand King Salmon Investments Ltd (ASX:NZK) reported a pro forma EBITDA of $29.7 million, an increase from $24.5 million the previous year.
- The company secured a significant funding partnership of up to $11.7 million with the New Zealand government under the Sustainable Food and Fiber Futures Fund.
- Record revenue of $211 million was achieved, with strong market presence in North America (44% of earnings) and New Zealand (32% of earnings).
- The balance sheet remains strong with net cash on hand at approximately $50 million.
- The adaptive farming strategy has shown improved fish performance outcomes compared to previous years, despite challenging conditions.
- Net profit after tax decreased to $13.4 million from $28.5 million the previous year, impacted by non-cash adjustments and Forex contract unwinds.
- Higher than expected sea farm mortality and lower growth rates are expected to reduce harvest volumes for the coming year.
- The company faces challenges with elevated mortality rates and lower than anticipated growth rates, impacting future harvests.
- Guidance for next year's pro forma EBITDA is wide, ranging from $15 to $24 million, reflecting uncertainty in harvest forecasts.
- Dividends remain on hold as the company focuses on developing the Blue Endeavor project.
Takkauraukatoa Morena, good morning to everyone. Welcome to this webcast for New Zealand King salmon. We'll kick off now.
So just to start with a standard disclaimer, please make sure you've read that, you consent with that and understand the disclaimer there.
And the presenters for today will be myself, Ben Rogers, our CFO, and Grant Lovell, our GM of aquaculture.
So just starting off with a high summary of what we'll cover today, FY25 performance, the net profit after tax is 13.4 million, compared to last year at 28.5. So compared to the prior period, the GAAP results were impacted again by non-cash adjustments relating to the fair value loss on biological assets of 7.7 million and a smaller contribution from the continued unwind of the Forex contracts that were executed in FY22 of 4.3 million.
The FY25 pro forma EEA, which is both our preferred performance measure and the profit measure King Salmon guides to, was a profit of 29.7 million.
Which compared to last year of 24
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