18 Nov 2015

One-time costs push down Sanford profits

8:02 pm on 18 November 2015

Seafood company Sanford says its full year net profit is down more than 38 percent, impacted by one-time costs associated with a transition to a more streamlined and focused business.

The Sanford Seafood factory gates

The Sanford Seafood factory gates Photo: RNZ

The company made a full year net profit of $13.8 million in the 12 months ended in September, reflecting $16.3m of costs, inlcuding $13.3m of non-cash impairments.

Chief executive Volker Kuntzsch said company's underlying operating profit was a better reflection of Sanford's strength, rising 25 percent to $52.4m.

The costs included the sale of non-core and non-profitable activities, such as Sanford's international purse seining tuna business and shifting the focus to marketing fish in Australia, rather than fishing activities.

"The year was marked by the introduction of a new direction, which led to the introduction of a new logo and tagline and changes in the organisational structure - the way we work and in the focus on our resources," he said.

The reduced fishing activity saw sales fall slightly, to $455.3m.

The strong performance had allowed Sanford to reduce debt by more than 15 percent, or $27 million dollars, he said.

The company was now focused on increasing sales of chilled fish to international markets.