Sanford, New Zealand's biggest listed fishing company, reported an 11 per cent drop in full-year profit after the rising kiwi dollar eroded returns in the second half, higher fuel costs and fleet disruptions.
Profit fell to $22.3million in the 12months ended September 30, from $25 million a year earlier, the Auckland-based company said in a statement today. Sales rose 10 per cent to $464 million.
Sanford estimates that a 1 cent decline in the New Zealand dollar adds about $2 million to earnings before interest, tax, depreciation and amortisation, so the impact of the currency averaging 82 US cents in the second half, from 71 cents a year earlier, resulted in about $14 million of lost EBITDA. Fuel costs rose by $6.5 million in the latest year.
Managing director Eric Barratt said the more recent easing in the currency and likely stability in market pricing of the company's main species, will help make up for fuel prices that are likely to remain challenging.
"We have some optimism that profitability will improve in the next year to closer to acceptable levels," Barratt said.