New Zealand King Salmon (NZK) H1 2025 earnings summary

Executive summary

• Net loss after tax of $20.8 million for 1HY25 (Sept), reversing from a net profit of $6.0 million in 1HY25 (Jan), driven by challenging biological performance, reduced harvest volumes, and a non-cash fair value write-down of biological assets.

• Pro-forma EBITDA was $5.7 million, down from $13.5 million in the prior period, reflecting lower harvest and high operational leverage.

• Management and board remain confident in long-term growth, supported by progress at Blue Endeavour and recovery initiatives.

• Report covers the six months ended 31 July 2025, with unaudited interim consolidated financial statements presented.

• Business activities include farming, processing, sale, and distribution of premium salmon products.

Financial highlights

• Revenue for the half-year was $94.5 million, down 7% year-over-year due to reduced harvest volumes.

• Gross profit turned negative at $(17.2)m, impacted by lower volumes and a $31.2m pre-tax fair value loss on biological assets.

• Net cash on hand increased to $58.4 million, up from $50 million at the end of January, supported by disciplined working capital management and SFF Futures funding.

• Finished goods inventory reduced from $17.9 million to $11 million over six months.

• Basic and diluted EPS were $(0.04), down from $0.01 in the prior period.

Outlook and guidance

• Pro-forma EBITDA guidance for FY25 (Sept) remains at $1m–$7m, with expectations toward the upper half.

• Harvest outlook for FY26 is 5,200–5,800 MT and for FY27 is 6,800–7,400 MT, reflecting expected biomass recovery.

• Dividends remain on hold as cash is reinvested into growth initiatives.

• Capex forecast for FY25 (Sept) is ~$14m, with $11m allocated to Blue Endeavour pilot and $3m for ongoing operations.