Sanford Earnings FC effected by FX changes

[mshierlaw]

I am interested in knowing the value added achieved for white fish in the transition from chartered Korean rust bucket slave ships to Kiwi factory ships.

There has been no recent change in the number of joint venture (JV) vessels fishing Sanford quota.

[iceman]

Yet another unusually, or at least it used to be, big day of trading for SAN. I wonder if we need to be concerned about foreign interests buying in and foreign ownership breaching quota ownership regulations ? SAN have recently flagged they were working on ensuring this would not happen but I haven't seen anything further from them on this issue. Has anyone ?

[forest]

Yet another unusually, or at least it used to be, big day of trading for SAN. I wonder if we need to be concerned about foreign interests buying in and foreign ownership breaching quota ownership regulations ? SAN have recently flagged they were working on ensuring this would not happen but I haven't seen anything further from them on this issue. Has anyone ?

14 December 2016
Hi iceman, from memory resolution 4 was about limiting foreign ownership to protect quota's.
(see below announcement made soon after AGM).

Annual Meeting Results and Director Independence
The Board of Directors of Sanford Limited wishes to announce that the following resolutions
were passed at its Annual Meeting of Shareholders held today:
Resolutions
1. Re-election of Dr W Bruce Goodfellow
2. Re-election of Mr Peter Kean
3. Auditor remuneration
In addition the following special resolution was passed with 99.98% of shareholders voting in
favour of the resolution:
4. Amendment of Constitution with effect from the close of the Annual Meeting
Director Independence
The Board has determined that the following Directors are determined to be Independent
Directors:
Mrs Elizabeth Coutts
Mr Peter Kean
Mr Robert McLeod
Mr Paul Norling

Dr W Bruce Goodfellow and Mr Peter Goodfellow are not Independent Directors due to their
association with a major shareholder.
Volker Kuntzsch
Chief Executive Officer

[percy]

Yes it was resolution 4.And it was passed.

[iceman]

Thanks percy and forest. We can safely assume they have this under control then !

[iceman]

And yet another large parcel of shares traded today, 750,000 or nearly $ 5.5m. Intriguing !!

[iceman]

An interesting interview with Sanford's CEO behind paywall on NBR yesterday https://www.nbr.co.nz/article/specia...eo-th-p-202819

In it he talks about the changes he is trying to implement at Sanford and his recent award as Person of the Year at the World's most prestigious seafood show at Brussels last month

[percy]

An interesting interview with Sanford's CEO behind paywall on NBR yesterday https://www.nbr.co.nz/article/specia...eo-th-p-202819

In it he talks about the changes he is trying to implement at Sanford and his recent award as Person of the Year at the World's most prestigious seafood show at Brussels last month

I can't access the article,however I would like to know whether you agree with him or not.?

[iceman]

I can't access the article,however I would like to know whether you agree with him or not.?

Not so much whether I agree with him or not. He has put some very clear targets and goals, some quite lofty. He will be judged on how SAN meets these goals. I certainly think he is trying to take SAN and the industry in the right direction and will be watching his progress with much interest. My view is that SAN has some very good but under utilised assets that will deliver much better profits if his goals are met.

I recently spoke to a mussel farmer that supplies SAN and he said they are already seeing big gains from SAN´s new selective breeding technology with more uniform sizes and quality. That´s an asset that could well deliver big gains in the very new future.

On the negative side, I am very disappointed with the poor performance to date of their newly commissioned freezer trawler and hope they sort it out pronto

[iceman]

Been browsing through the interim results announcement which seems to be relatively good.
Main points being a 25% improvement in NPAT and a respectable 4.4% increase in EBIDTA despite some challengers during the period. Challenges have included unfavourable weather conditions for the inshore fleet which has become increasingly important for SAN with their "Focus on Fresh" strategy so good to see they managed to increase supply and sales of fresh despite this. Focus on local supermarkets and restaurants is a positive with an increasing number of top restaurants buying from SAN. This should further grow with the development of the new Big Glory Bay brand that is slowly taking off.

Deep water fleet has done well with focus on higher value species and product. I do however hold concerns for the new vessel San Granit's poor performance so far. The CEO states this is due to a "number of technical adjustments to suit NZ conditions". I say humbug. They knew when they bought the ship it would be working in NZ. I say silly buying such an old vessel and vessel management has performed very poorly. Heads should roll if they don't get it sorted pronto.

Salmon harvest in line with expectations. Large part of future growth will come from salmon so I hope we will see announcements in the near future about increase in water space off Stewart Island.

Mussel harvest has been below expectations due to low spat supply. The good news here is the new artificial and selectively bred spat will soon come on harvest and I believe the initial results are very promising. This has the potential to make the mussel business much more efficient and to drive further growth.

All in all I think this report confirms and ongoing progress with SAN's new direction and drive towards much better return from the assets.

I would think that capital expenditure needs would be relatively low in coming years so expect to see a growth in dividends very soon and ongoing for a while. If not for FY17, then in 2018. Would like to see them introduce a DRP as well.

Discl: A satisfied holder