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Sealord reports rise in profit

Contributor:
Fuseworks Media
Fuseworks Media

Sealord Group Ltd has reported a profit from continuing operations of $21.8M for its financial year ended 30 September 2017.

Net Profit Before Tax from continuing operations of $28.2M was + 10.2% ahead of the previous year.

This was before a net cost related to discontinued operations of $3.2M.

Chairman Whaimutu Dewes said "The result was pleasing in that the Group continues to make steady and consistent progress against its strategic initiatives."

CEO Steve Yung said "The improved performance traced to strong operational results (both land and sea), strong sales volumes and further reductions in overheads."

Revenues (including revenues from discontinued operations) fell from $454.3M to $325.8M, as the Group divested its British-based Sealord Caistor processing business to a wholly owned subsidiary of Nippon Suisan Kaisha Ltd. The strategic decision to sell its interests in Sealord Caistor is consistent with Sealord’s focus on operational performance and its vision to be the best deep sea fishing business in New Zealand, with a significant salmon farming operation in Australia.

Mr Yung said "It makes the improvement in operating profits even more satisfying considering the lower revenue base. Going forward, the Group now has a more sustainable margin structure."

Construction of Sealord’s $70M purpose-built factory trawler - the first new design in New Zealand’s deep water fleet in over 20 years - remains on track for delivery in May 2018.

"This significant investment demonstrates the commitment of Moana New Zealand and Nissui to Sealord and our confidence in the future" said Whaimutu Dewes.

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