Sanford Limited (NS) Analysis

Overview

The company's origins go back to the 1880s and in 1904 Albert Sanford incorporated Sanford Ltd. The group's resources are committed almost entirely to the inshore and deep-water fisheries of NZ, and allied operations of coolstores, shipbuilding, engineering and aquaculture.

The company has also become involved in joint venture operations with Japanese, Taiwanese and Korean interests, and in overseas operations following acquisitions in Chile (1994 - closed 1997), Namibia (1996) and Australia. Its fishing fleet includes inshore vessels specialising in longline and trawl snapper for Asian customers, deep water freezer vessels, mid-water trawlers, ice vessels, specialised vessels for scampi fishing and purse seining, and deep water longline operations. Initiatives included joint participation in a bid to acquire Brierley Investments' 50% stake in NZ seafood processor Sealord Products, and acquisition of a strategic stake (approximately 14.8%) in Canadian seafood processor FPI.

In December 2002 it announced a change of balance date from 31 August to 30 September to coincide with the end of the fishing quota year.

In September 2004 it acquired a 25% stake in Chinese seafood processing company Weihai Dong Won Food Co Ltd and in October 2004 it bought the NZ fishing business and assets (apart from the scampi quota) of Simunovich Fisheries Ltd.

On 1 December 2010 Sanford acquired the Greenshell mussel and Pacific oyster businesses from Pacifica Seafoods for $85 million.

SAN has been granted Listing with a 'Non-Standard' (NS) designation. This designation has been granted due to a waiver from NZX Main Board Listing Rule 11.1.6 and an approval under Rule 11.1.5 that allow SAN to incorporate provisions in its constitution that enable SAN to monitor the aggregate holding of SAN's securities by Overseas Persons and to maintain it at a level below approximately 22.5%. This is a key aspect of SAN's ability to reduce the risk of SAN being required to forfeit its fishing quota under the provisions of the Fisheries Act 1996 by virtue of SAN becoming an "Overseas Person" without prior consent being obtained under the Overseas Investment Act 2005 (something which SAN would otherwise have very limited ability to control).

Specifically, the provisions in SAN's constitution grant SAN's board the power to:

• require information from a security holder or proposed transferee of SAN's securities;
• restrict a transfer of securities in certain circumstances, including where registration of that transfer would cause SAN to Breach the Overseas Ownership Threshold (as defined in the Fourth Schedule of SAN's constitution);
• suspend the voting rights attaching to securities that SAN's Board determines are Affected Shares (as defined in the Fourth Schedule of SAN's constitution); and
• require a security holder to sell, or to sell on behalf of a security holder, any securities that SAN's Board determines are Affected Shares (as defined in the Fourth Schedule of SAN's constitution) to non-overseas persons.

For further information, please see a copy of the waiver and approval decision under Documents on SAN's homepage on nzx.com.

Performance

The following information was extracted from Sanford Limited's full year results, released on 18 November 2025:

Sanford delivers a record full year result

Summary:

• Revenue of $584.1m, up 0.2% on the prior comparative period (pcp)

• Adjusted EBIT of $105.2m, up 41.8% on pcp

• EBIT of $102.1m, up 88.0% on pcp

• Net Profit after Tax (NPAT) of $63.7m, up 223.8% on pcp

• Operating cashflow of $135.3m, up 85.3% on pcp

• Net debt of $93.4m, a drop of $92.1m from FY24

• Final dividend of 5.0 cents per share (cps) fully imputed, taking the full year FY25 dividend to 10.0c per share

Sanford’s Managing Director, David Mair, said “I am pleased to report to Shareholders on an excellent result for the 2025 financial year (FY25). Revenue reached $584.1m, adjusted earnings before interest and tax (adjusted EBIT) was $105.2m, EBIT was $102.1m and net profit after tax $63.7m. More importantly, operating cashflow of $135.3m and disciplined capital investment of $23.3m not only maintained assets but enabled significant debt reduction of $92.1m from $185.5m to $93.4m. These are all record results.”

Sanford’s aquaculture businesses (Salmon and Mussels) have exceeded expectations. However, the Wildcatch business has fallen short of last year. David said “I have carried out an initial high-level review of our aquaculture businesses (Salmon and Mussels) with a clearer understanding of what is needed to build a platform for growth.

Wildcatch includes our inshore business, our deepwater fleet and factory in Timaru, and our fishing partners. We have been separating out each value stream to understand its profitability and capital requirements.” The Wildcatch performance will be a focus for FY26.

Business Performance FY25

Salmon: Revenue $127.5m (FY24 $107.0m), Profit Contribution $50.4m (FY24 $40.9m).

Mussels: Revenue $125.5m (FY24 $134.1m), Profit Contribution $34.8m (FY24 $13.9m).

Wildcatch: Revenue $318.9m (FY24 $318.9m), Profit Contribution $52.4m (FY24 $55.7m).

(Profit Contribution is Adjusted EBIT before head office overheads.)