Sealord's annual profit fell 19 per cent largely on an impairment charge of its British-based Sealord Caistor processing business, which was sold to shareholder Nippon Suisan Kaisha.
Net profit fell to $18.5 million in the year ended September 30 versus $22.9m a year earlier, according to holding company Kura's financial statements, lodged with the Companies Office.
Discontinued operations contributed a loss of $3.2m to the bottom line, including an impairment charge of $4.9m. Sealord's income tax expense was $6.4m versus $3.7m in the prior year.
Sealord's figures were better at an operating level with a 5.4 per cent gain in earnings to $28m as expenses continued to be curbed. The Nelson-based company, jointly owned by iwi fishing group Moana New Zealand and Japan's Nissui, paid dividends of $9.2m in 2017 versus $4m in the prior year.
Revenue from continuing operations at New Zealand's second-largest fishing company shrank to $325.8m from $337.3m in the prior year due to the slimmed down business, while the cost of sales from continuing operations was $233.6m versus $241m in the prior year. As a result, gross margins narrowed slightly to 28 per cent from 28.5 per cent in the prior year.
