New Zealand King Salmon Investments Limited Analysis

Overview

New Zealand King Salmon is the world's largest aquaculture producer of King salmon, supplying salmon under three key brands: Ora King, Regal and Southern Ocean. We own and operate eight seafarms in the Marlborough Sounds, harvesting and processing more than 7,000 MT of King salmon a year.

Three new sea farms consented in 2014 are expected to enable the company to approximately double annual production over time. NZ King Salmon controls all elements of the value chain from breeding and growing to harvesting and processing, and we have been selling salmon to consumers and chefs for more than 30 years.

The New Zealand salmon farming industry has been recognised as a global leader in sustainable seafood following New Zealand's 'Best Choice' accreditation in 2015 in the Monterey Bay Aquarium's globally respected consumer guide Seafood Watch.

NZ King Salmon listed on the New Zealand and Australian Stock Exchanges in October 2016.

Performance

The following information was extracted from New Zealand King Salmon Investments Limited's half year results, released on 24 September 2024:

New Zealand King Salmon Investments Ltd (NZX & ASX: NZK) reports its financial performance for the year ended 31 January 2025 (FY25). Key points include:

• FY25 net profit for the year of $13.4 million, compared to a net profit for the year of $28.5 million in FY24.

• FY25 Pro-Forma EBITDA was a profit of $29.7 million, compared to an EBITDA profit of $24.5 million in FY24.

• Revenues increased from $187.1 million in FY24 to $210.9 million in FY25 (an increase of 13%).

New Zealand King Salmon Chair Mark Dewdney said: “We have continued to make solid improvement during FY25. Our teams throughout the business have worked incredibly hard during the year, and our strong financial performance is a credit to them. Our strong balance sheet gives us the confidence, and ability to invest in our future growth plans, which are anchored by our Blue Endeavour open ocean farm.”