King Salmon faces significant half-year loss, pivots strategy

New Zealand King Salmon Investments Limited (NZKS) announced a net loss after tax of NZD(20,845) for the six months ended 31 July 2025 (1HY25 (Sept)). This contrasts with a NZD6,006 net profit in the prior comparable period. The downturn was attributed to challenging biological performance, reduced feed volumes, and a subsequent decision to decrease harvest volumes to rebuild biomass. Revenue for the period was NZD94,471, down 7% from NZD101,735, with harvest volumes decreasing 20% to 2,691 MT. Pro-forma operating EBITDA also declined significantly to NZD5,736 from NZD13,516, primarily due to lower harvest and increased overhead costs from growth investments.

In response, NZKS is focusing on core operations, implementing a new summer feed diet and expanding its breeding program for thermotolerance and disease resistance. The company is accelerating growth initiatives, including the Blue Endeavour pilot farm, with pens constructed and fish growing at Waihinau, scheduled for relocation in November 2025. Capex spend for the period was NZD8.5m, with NZD5.8m allocated to the Blue Endeavour pilot.

For the 8-month period ending 30 September 2025, NZKS maintains its Pro-Forma EBITDA guidance range of NZD1 million to NZD7 million, with the board guiding to the upper half. Expected harvest is projected to be between 3,150 MT and 3,450 MT. The board also reconfirmed that dividends will remain on hold as NZKS develops the Blue Endeavour project.