The New Zealand King Salmon Co Ltd (ASX: NZK) share price is steady at $1.52 per share today despite the company announcing a $7.1 million loss for the 7 months to January.
The South Island aquaculture company has remained within 5 cents of its current share price for more than a month now, after falling more than 65 cents over the past 12 months.
New Zealand King Salmon also posted revenue of $95.2 million, and pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) of $10.0m (7 months), compared to $25.1m in FY20 (12 months) in its FY21 results.
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New Zealand King Salmon share price recovering
Chairman John Ryder said that the company's recovery was strong considering its external challenges.
It is a creditable outcome considering we are recovering from the challenges of the COVID-19 pandemic. The full financial impact of excess inventory, caused by the pandemic, has been absorbed into these results with appropriate contingencies built in.
Going forward, our average price will return to pre-COVID levels, however margins will still be affected by higher freight and distribution costs. We are seeking to increase prices globally around the middle of the calendar year with a view to recovering some of these ongoing costs.
About the aquaculture company
New Zealand King Salmon is the world's largest producer of the King salmon species, operating under Ora King, Regal, Southern Ocean and Omega Plus, and the New Zealand King Salmon label.
It employs 500 staff in New Zealand and is seeking to play its part in the country's economic rebound from the coronavirus pandemic. It's currently submitting a Blue Endeavour application to farm in the Cook Strait, 7km north of Cape Lambert.
CEO Grant Rosewarne says if successful, the project will deliver "hundreds of green jobs" to the nation.
Rosewarne said the company had expanded into Italian fine food retailers and was also marketing dog treats to North American "specialty" pet retailers.
The New Zealand King Salmon board has not yet decided whether to reinstate its dividends.
