KEY POINTS:
Listed fishing company Sanford has boosted revenue but a drop in foreign-exchange earnings has eroded full-year profits.
Sanford made just $4.8 million from conversion of foreign exchange contracts in the year ending September 30, compared with $40.4 million the previous year.
Revenue was up at $391.2 million but net profit of $26.1 million was down from $30.4 million last year.
The company has no more foreign-exchange hedging and is delaying the conversion of United States dollar receipts - Sanford held US$23 million ($33.9 million) in bank deposits at balance date - in anticipation of a fall in the kiwi dollar.
Earnings before interest, tax, depreciation, amortisation, foreign exchange earnings and asset sales was $63.3 million, up from $38.3 million.
Sanford's shares closed unchanged yesterday at $4.80.
Managing director Eric Barratt said it was a good result "because we've worked hard to improve the efficiency of our operations at all levels and achieved improvements right across the board in all businesses.
"We would have been even more successful if it hadn't been for the higher fuel prices this year."
An easing of fuel prices had been welcome relief.
The company was reasonably optimistic about the year ahead and saw opportunity for improved earnings, "of course we're still dependant on exchange rates", Barratt said.
"I don't think anybody in the export sector at US68c is able to say we're comfortable."
The company said with generally strong markets, stable catches and increased aquaculture production an improved result was expected next year, particularly in light of forecasts for a further decline in the kiwi dollar's value.
The extent of improvements would, however, be influenced by success in more variable fisheries including skipjack tuna, jack mackerel and squid.
