New Zealand King Salmon Investments (ASX:NZK) Reports 1HY25 Financial Results
Financial Performance
New Zealand King Salmon Investments Limited (ASX:NZK) reported a net loss of $20.8 million for the six-month period ended 31 July 2025, compared to a net profit of $6.0 million in the same period last year. The GAAP results were primarily affected by non-cash adjustments, including a fair value write-down on biological assets and inventory of $22.5 million after tax, contrasting with a gain of $2.6 million after tax in the prior comparable period. The company’s pro-forma EBITDA decreased to $5.7 million from $13.5 million in 1HY25 (Jan). Sales volumes also declined by 17%, from 3,178MT to 2,624 MT, and revenues fell by 7%, from $101.7 million to $94.5 million.
Earnings Guidance
The company maintained its earnings guidance range for pro-forma EBITDA at $1 million to $7 million for the eight months ending 30 September 2025, with the Board anticipating results towards the upper half of this range.
Executive Comments
Chair Mark Dewdney stated, “The half-year results have been impacted by challenging biological performance, with subdued feed outs and slightly elevated mortality impacting our Salmon available for harvest and sale. As a direct result of these impacts the Board made the difficult decision in May to reduce the harvest for FY25 (Sept), to allow our biomass to recover. Pleasingly, feed out rates (and growth rates) are now back on track and biomass is rebuilding well for FY26 (Sept) and FY27 (Sept).
“Despite the challenges of this financial period, the Board remain confident that current actions will provide further mitigations to production challenges, and the progression of the company’s growth plan will secure a bright future,” says Dewdney.
Chief Executive Officer Carl Carrington said, “The good news is that we have many initiatives already in motion that will help strengthen our core business, and mitigate the future impact of these fish health and performance challenges. These include implementing a summer feed diet which will improve summer performance, improve health and reduce mortality; breeding for resilience, continuing our selective breeding for thermotolerance and summer survival. Kicking off construction of pilot Recirculated Aquaculture Systems (RAS) at Tentburn, which we are very confident will improve smoltification outcomes, reducing early runting.”
“We have a strong focus on executing growth, which can be seen in the progress of our Blue Endeavour open ocean pilot farm, delivery of our service vessel Whekenui, and our purchase of the Cloudy Bay commercial site in Blenheim, to support our future processing needs and volumes”, says Carl.
“Our confidence remains around the long-term growth opportunities for NZK. Our direction of travel has not changed. Rather, the emphasis on certain initiatives has increased, sequencing is shifting in response to new circumstances, and certain investments are accelerating.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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