Sanford Earnings FC effected by FX changes

[Marilyn Munroe]

I was watching a video on YouTube about container ships. Part of the video showed a crew member checking a reefer container of frozen fish. It showed the set point of the cooler unit to be -60c. Wow I said to myself "That's cold."

The commentary explained if fish were snap frozen when caught and transported at this low temperature the cell walls of the fishes flesh was not burst by the expansion of freezing and when thawed and cooked they retained moisture allowing a more succulent serving of fish.

My questions are;

Is my understanding of this correct?

Do Sanford use this process?

Do fish processed this way command a premium price?

Boop boop de do
Marilyn

[iceman]

I was watching a video on YouTube about container ships. Part of the video showed a crew member checking a reefer container of frozen fish. It showed the set point of the cooler unit to be -60c. Wow I said to myself "That's cold."

The commentary explained if fish were snap frozen when caught and transported at this low temperature the cell walls of the fishes flesh was not burst by the expansion of freezing and when thawed and cooked they retained moisture allowing a more succulent serving of fish.

My questions are;

Is my understanding of this correct?

Do Sanford use this process?

Do fish processed this way command a premium price?

Boop boop de do
Marilyn

Mainly tuna and some other high fat content species. Yes Sanford does that for tuna and possibly some toothfish. Not for other species to my knowledge but they may well do

[mshierlaw]

I was watching a video on YouTube about container ships. Part of the video showed a crew member checking a reefer container of frozen fish. It showed the set point of the cooler unit to be -60c. Wow I said to myself "That's cold."

The commentary explained if fish were snap frozen when caught and transported at this low temperature the cell walls of the fishes flesh was not burst by the expansion of freezing and when thawed and cooked they retained moisture allowing a more succulent serving of fish.

My questions are;

Is my understanding of this correct?

Do Sanford use this process?

Do fish processed this way command a premium price?

Boop boop de do
Marilyn

Try to find a -60c coldstore in NZ, good luck. Toothfish are not currently processed or stored @ -60c. Major infrastructure upgrades required to offer this premium, is the market prepared to pay?

[mshierlaw]

Sanford have just completed purchase of ENZAQ, a producer of mussel powder in based in Blenhiem.

See http://www.enzaq.com

Not sure of the plants processing capacity, but looks like a good fit to increase return on mussels.

[Marilyn Munroe]

An item in the Timaru Herald about Sanford engaging more staff in Timaru;

https://www.stuff.co.nz/timaru-heral...ooms-in-Timaru

Boop boop de do
Marilyn

[iceman]

An article in the NBR yesterday talking about the change happening at Sanford with the new CEO having completely changed the focus of the company for the better and results already coming through. A long way to go yet though but I am convinced that SAN has a lot of very good assets that should be performing much better than they have for many years. Also good to see the increase in free float, much more market interest and turnover drive up a good increase in the SP over the last 18 months. A nice little turnaround or change of focus story that hasn't received a lot of comments.
https://www.nbr.co.nz/article/sanfor...erest-b-208334

[peat]

yes this news came out last week via another research dept and we got a few clients in last week before the price hiked.

[iceman]

Sanford should be right in the middle of this and will benefit greatly if this happens https://www.stuff.co.nz/national/976...g-in-southland

[iceman]

Just been reading the highlights of the FY statement yesterday. Main points are a 3% increase in revenue on flat quantity of green weight catch which shows a steady progress in improving return from catch. This has been achieved with increased business with high end food service customers through their "focus on fresh" strategy and the first year with the Big Glory Bay premium branding of their salmon. Much more to be gained here.

NPAT up 8% but big improvement of 46% in cashflow from $34.4m to $50.3m. Haven't been able to study the detail of this but this gives me further confidence that we will see increased dividends coming our way soon.

The mussel powder business purchased in Blenheim during the year allows SAN to broaden their business into nutraceutical markets and will be interesting to watch.

Sadly the old factory vessel San Granit that they bought from Norway last year has been a bit of a disaster with how long it is taking to get up to scratch and still a long way to go.
Overall a satisfying result and so is the upward trajectory of the SP that has gone up around 55% since the annual report release 2 years ago.

[Marilyn Munroe]

Sadly the old factory vessel San Granit that they bought from Norway last year has been a bit of a disaster with how long it is taking to get up to scratch and still a long way to go.
Overall a satisfying result and so is the upward trajectory of the SP that has gone up around 55% since the annual report release 2 years ago.

Thanks for the update Iceman.

I assume frozen whitefish fillets processed at sea command a premium in the market. Is this the case?

Boop boop de do
Marilyn