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 25 September 2025:

NZK - NEW ZEALAND KING SALMON INVESTMENTS LIMITED ANNOUNCES 1HY25 (SEPT) RESULT

Key points include:

-1HY25 (Sept) net loss for the period of $20.8 million, compared to a net profit of $6.0 million in 1HY25 (Jan). The GAAP results were predominately impacted by non-cash adjustments relating to a fair value write-down on biological assets/inventory of $22.5m (after tax) compared to gain of $2.6m (after tax) for the prior comparable period.

-1HY25 (Sept) pro-forma EBITDA of $5.7 million, compared to an EBITDA of $13.5 million in 1HY25 (Jan).

-Sales volumes decreased from 3,178MT in 1HY25 (Jan) to 2,624 MT in 1HY25 (Sept) (a decrease of 17%).

• Revenues decreased from $101.7 million in 1HY25 (Jan) to $94.5 million in 1HY25 (Sept) (a decrease of 7%).
• Earnings guidance range of pro-forma EBITDA has been held at $1m - $7m for the period 8 months 30 September 2025 (FY25 (Sept), with the Board guiding to the upper half of this range.

New Zealand King Salmon Chair, Mark Dewdney, said: “The half-year results have been impacted by challenging biological performance, with subdued feed outs and slightly elevated mortality impacting our Salmon available for harvest and sale. As a direct result of these impacts the Board made the difficult decision in May to reduce the harvest for FY25 (Sept), to allow our biomass to recover. Pleasingly, feed out rates (and growth rates) are now back on track and biomass is rebuilding well for FY26 (Sept) and FY27 (Sept).