New Zealand King Salmon (NZK) H1 2026 earnings summary

Executive summary

• Net loss after tax of $20.8m for the half-year, compared to a net profit of $6.0m in the prior period, driven by a non-cash fair value write-down of biological assets, reduced harvest volumes, and challenging biological performance.

• Pro forma EBITDA was $5.7m, down from $13.5m in the prior year, reflecting reduced harvest volumes and high operational leverage.

• Management remains confident in long-term growth, supported by progress at Blue Endeavour and inshore farms, and strong demand in core markets.

• Unaudited interim consolidated financial statements presented for the six months ended 31 July 2025.

Financial highlights

• Revenue for the half-year was $94.5m, 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 $58.4m, up from $50m at the end of January, supported by disciplined working capital management and SFF Futures funding.

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

• CapEx at 31 July was $8.5m, with a year-end forecast of $14m.

Outlook and guidance

• Full-year pro forma EBITDA guidance remains at $1m–$7m, with expectations toward the upper half of the range.

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

• Dividends remain on hold as cash is reinvested into the business.

• Announced unconditional purchase of a commercial property for $8.14m, to be funded from existing cash.