NZ King Salmon’s EBITDA Falls 58% as Sales Volumes Drop 17% in 1HY25
New Zealand King Salmon reports a $20.8 million net loss for the half-year ending July 2025, driven by biological asset write-downs, while maintaining EBITDA guidance and advancing key growth initiatives.
- 1HY25 net loss of $20.8 million due to $22.5 million biological asset write-down
- Pro-forma EBITDA declined to $5.7 million from $13.5 million year-on-year
- Sales volumes dropped 17%, revenues down 7% compared to prior period
- Board maintains FY25 EBITDA guidance of $1m–$7m, targeting upper half
- Growth initiatives include selective breeding, RAS pilot, and new processing site acquisition
Financial Performance Under Pressure
New Zealand King Salmon Investments Ltd (NZK) has reported a significant turnaround in its financial results for the six months ended 31 July 2025. The company posted a net loss of $20.8 million, a stark contrast to the $6.0 million net profit recorded in the previous comparable period. This swing was largely driven by a non-cash fair value write-down of $22.5 million on biological assets, reflecting challenges in fish health and inventory valuation.
Pro-forma EBITDA also took a hit, falling to $5.7 million from $13.5 million year-on-year. Sales volumes declined by 17% to 2,624 metric tonnes, while revenues dropped 7% to $94.5 million, underscoring the operational headwinds faced during the period.
Operational Challenges and Strategic Responses
The company attributed these setbacks to subdued feed outs and elevated mortality rates, which impacted the available salmon biomass for harvest. In response, the Board made the difficult decision to reduce harvest volumes for the full financial year ending September 2025 to allow biomass recovery. Encouragingly, feed and growth rates have since improved, setting a foundation for recovery in the coming years.
Management is actively pursuing several initiatives to mitigate these biological challenges. These include implementing a new summer feed diet aimed at improving fish health and survival, advancing selective breeding programs focused on thermotolerance and resilience, and launching a pilot Recirculated Aquaculture System (RAS) at Tentburn to enhance smoltification and reduce early runting.
Growth Projects Signal Long-Term Confidence
Despite short-term financial pressures, NZ King Salmon is pressing ahead with growth projects. The Blue Endeavour open ocean pilot farm is progressing, alongside the delivery of the new service vessel Whekenui. Additionally, the acquisition of the Cloudy Bay commercial site in Blenheim aims to bolster future processing capacity and volume handling.
Chair Mark Dewdney and CEO Carl Carrington expressed confidence that these strategic moves, combined with operational improvements, will position the company well for sustainable growth. The Board has maintained its EBITDA guidance for FY25 between $1 million and $7 million, with a bias toward the upper half of this range, signaling cautious optimism amid ongoing challenges.
Looking Ahead
While the current period reflects a setback, the company’s focus on innovation and resilience-building initiatives suggests a deliberate pivot toward long-term stability and expansion. Investors will be watching closely to see how these efforts translate into financial and operational recovery in the quarters ahead.
Bottom Line?
NZ King Salmon’s near-term losses underscore biological risks, but growth initiatives hint at a resilient future.
Questions in the middle?
- How quickly will the biological asset write-downs stabilize or reverse?
- What impact will the new feed diets and selective breeding have on mortality and growth rates?
- When will the pilot Recirculated Aquaculture System deliver measurable production improvements?