NZK Market Update

3 June 2021

Market update

The Board of New Zealand King Salmon advise that trading in the first half of FY22 (Feb to July 21) has been problematic. King Salmon is a difficult species to farm and there were issues with our fish in the warmer Pelorus Sound over the summer months that hindered growth in that region, after changes were made to our farming model. The smaller fish size and reduced biomass has progressively become more apparent with the completion of post summer weight assessments

We believe this is temporary. Steps have been made to rectify the issue and we believe that fish sizes will be recovering by July and biomass should improve to a satisfactory position in October. The balance sheet remains strong.

The company has profitably closed out foreign exchange hedges that were surplus to requirements. Price increases have been notified to the market, with benefit to be seen in the second half.

In light of current trading conditions, we expect to provide more detailed guidance with the announcement of our half year results for the six months ending 31 July 2021.

Ends

Issued by:
Grant Rosewarne, Managing Director & CEO, New Zealand King Salmon Investments Limited
Email: [email protected]

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Announcement PDF