Kingfish Posts -3.2% NAV Return in FY2026, Q1 FY2027 Gross Return Hits 8.7%

Kingfish Posts Loss as Market Volatility Weighs on FY2026 Performance

Kingfish Limited (NZX:KFL) reported a net loss of NZD 13.6 million for the financial year ended 31 March 2026, a sharp reversal from the NZD 40.8 million profit posted in the prior year. Despite this, the company delivered a modest total shareholder return of +1.3%, supported by dividends of 10.84 cents per share, equating to an 8.4% dividend return based on the average share price.

The adjusted net asset value (NAV) return for the year was -3.2%, trailing the S&P/NZX50G benchmark index which rose +5.2%. Kingfish’s gross portfolio return also lagged, at -2.1%. The portfolio’s relative underperformance reflects challenging market conditions, including broad-based sell-offs in AI-related sectors and geopolitical tensions that disrupted consumer stocks.

Capital Management and Shareholder Equity Trends

Kingfish’s NAV decreased by NZD 39 million to NZD 431 million, driven by the net loss and dividend payments of NZD 38 million, partially offset by NZD 14 million in dividend reinvestments and NZD 1 million in share buybacks. Over its 22-year history, Kingfish has returned NZD 403 million to shareholders through dividends and buybacks, with NZD 154 million reinvested via the dividend reinvestment plan and NZD 245 million raised from warrants exercised.

Early Signs of Recovery in FY2027

The first quarter of FY2027 offers a more optimistic picture, with a net profit of NZD 35.5 million and a gross portfolio return of 8.7%, outperforming the benchmark’s 5.5% gain. The share price ended the quarter at NZD 1.20, slightly above the FY2026 year-end price of NZD 1.19. This improvement suggests some resilience despite ongoing market volatility.

Portfolio Manager Highlights Market and Portfolio Dynamics

Portfolio Manager Matt Peek attributed the FY2026 underperformance to a combination of global economic headwinds and sector-specific challenges. New Zealand’s economic recovery remained sluggish, with GDP growth of only 0.2% in calendar 2025, well below expectations. Interest rate hikes by the Reserve Bank of New Zealand and geopolitical risks, including the upcoming NZ election, add further uncertainty.

Within the portfolio, strong performers like Fisher & Paykel Healthcare and Infratil were offset by weaker returns from consumer-facing stocks such as a2 Milk and Vista Group, which faced regulatory and sector-specific pressures. The portfolio continues to focus on quality growth stocks with wide economic moats and exceptional management, a strategy the company remains confident will pay off over the medium term.

Governance and Shareholder Resolutions

At the annual meeting held on 7 August 2026 in Auckland, shareholders re-elected directors Dan Coman and Simon Flood, both standing for election. The meeting also approved the remuneration of the auditor, PricewaterhouseCoopers. Chair Fiona Oliver emphasised the company’s commitment to its long-term investment objectives despite the challenging environment.