The strong profit increase was also helped by valuations of larger biomass and bigger fish due to longer growing times as the company slowed the harvest.
The aquaculture company declared pro forma earnings before interest, tax, depreciation and amortisation (Ebitda) of $25.1m for 2020, in line with FY2019 and just within the guidance.
The statutory Ebitda was $36m and revenue was down 10% to $155m when covid-19 hit food service sales and air freight to the United States, the biggest export market.
Back home sales revenue dropped 50% during the level four lockdown and with the help of the Government’s wage subsidy all 550 staff members were kept employed.
Sales volumes have recovered to about 80% of pre-covid levels during August.
Average sale prices have risen 12% domestically, compared with FY2019, and 5% in export markets.
Because of the ongoing uncertainties, larger inventories and ensuring prudent cash availability, the directors decided not to pay a final dividend.
Feed conversion ratios across seven farms improved from 1.8 to 1.76 and the mortality was down to 15% of biomass.
Inventories increased by $15m to $35m due to the slowdown in sales, the need to harvest fish to ensure optimum health and grow-out, plus compliance with consented feed discharge levels.
NZ King Salmon remains confident it will receive consents from the Marlborough District Council to the proposed Blue Endeavour open ocean farm in Cook Strait, capable of 5000 tonnes of fish annually at full development.
Last year’s company harvest was 7336t, down 7.5%, and the current farms have a maximum production between 10,000-11,000t.
Sales were only 6330t, down 16%.
