Aotearoa Fisheries' oysters. (Photo Credit: Aquaculture New Zealand)

Good prospects for paua and oysters improve Maori fishery outlook for 2014

On its 2013 financial report, Aotearoa Fisheries highlighted that its own managed divisions recorded a profit after interest and before tax of NZD 14 million (USD 11.6 million). This result implies an increase in NZD 2 million (USD 1.6 million) from the previous year and 7 per cent above planned target.

The result is extremely commendable given the sharp increase in the value of the New Zealand dollar in relation to both the Australian and US dollar, the two major trading currencies for the company.

However, it is also the first time in its history that Aotearoa Fisheries informs losses.

Aotearoa Fisheries, as part of Sealord Group Limited, was affected by the equity accounting loss from Sealord of NZD 23 millon (USD 19.1 million).

One of the reasons was the sale of its Argentinean subsidiary, Yuken, which represented a NZD 44.4 million (USD 36.8 million) drain to the company.

A regards development, Aotearoa Fisheries continued with its growth strategy with a number of significant investments: NZD 16 million (USD 13.3 million) in a brand new manufacturing facility at Palmerston North for their Prepared Foods division; the purchase of OceaNZ Blue, a paua farming business in Bream Bay, Northland in last September.

The plan of extending its paua product range gives the company access to a reliable, year round, high quality supply of paua that supplements and diversifies Aotearoa Fisheries’ investment in wild harvest paua.

The company has also been able to purchase key assets from Anton’s Seafoods Limited, an Auckland-based business with a 40-year history in the fishing industry, which will be the new centre of Aotearoa Fisheries’ Inshore operations.

The firm sees China becoming increasingly important in the future, however, currently the country is still far from fully developed as a market. During the year, Aotearoa Fisheries sent increased volumes of frozen fish and oysters into China.

The 2014 earnings outlook is likely to be suppressed primarily by two key external items: the appreciation of the NZD-AUD exchange rate and the cyclic downturn in paua pricing. Notwithstanding, oysters have improved underlying business performance sufficiently to offset the exchange impact.

Besides, from an aggregate perspective the improvement in these businesses is offset by the outlook for paua.

On its part, Sealord is expecting a significant turn around in 2014 and this will result in a profit contribution to Aotearoa Fisheries of NZD 9.75 million (USD 8.09 million).

Related articles:

- Sealord confirms sale of Argentinean subsidiary
- Nissui not leaving Sealord

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