Sanford result offsets Kiwi dollar's impact

The Fish Site
by The Fish Site
31 May 2007, at 1:00am

NEW ZEALAND - An asset sale and higher earnings have helped fishing group Sanford offset an adverse $14.5 million swing in the Kiwi dollar to a slight rise in interim profit.

Profit for the six months to March rose to $11.7 million, from $11 million in the same period of last year.

The company held its fully imputed interim dividend at 9 cents a share.

Profit was up after a $7.5 million one-off gain from selling Argentinian ship-owning company Pesquera Sanford Argentina and a 70 per cent stake in ship-operating firm Pesquera San Arawa.

Earnings before interest, tax, depreciation and amortisation rose $1.6 million to $26.5 million due to better tuna prices and returns from aquaculture.

Lower interest costs and reduced depreciation and amortisation also helped the bottom line.

The Kiwi's rise from US66c to US72c saw the largely unhedged Sanford record foreign exchange losses of $7.3 million.

However, the mostly non-cash losses could be recovered if the Kiwi fell in the second half, Sanford said.