"Good" Third Quarter, Despite Lingering Covid Impacts

3 August, 2022



Sanford Records “Good” Third Quarter, Despite Lingering Covid Impacts

New Zealand seafood company Sanford Limited (NZX:SAN) has released a third quarter update for
2022, showing its wildcatch division as the standout performer for the period.

Overall sales volumes are up 14.4% versus Q3 2021. Other notable results include:
• Wildcatch: pricing up 7.6% on Q3 2021. Sales volumes at 16.6k GWT for the quarter are
better than the prior comparable period (14.2k GWT in Q3 2021) and best quarter of 2022
so far.
• Greenshell Mussels: least well performing division, due to labour constraints impacting
ability to supply. Pricing in this division up in Q3 by 7.4% versus the prior comparable
period.
• Salmon: continues to trade at consistent levels overall to the prior comparable period. A
strong quarter on pricing, up 23% on Q3 2021. Inventory remains at very low levels.

CEO Peter Reidie says “we are continuing on the pathway to recovery and see this as a good third
quarter, compared to the same period last year. Covid’s lingering impact and New Zealand’s tighter
immigration settings mean labour markets are tight. This is affecting our ability to meet the demand
for our products. Our Greenshell Mussels division is the most affected by this, meaning our
performance in this division remains behind our expectations.”

“Wildcatch continues to perform strongly as the engine room of our business. This will help power
our plans for growth and capital investment to take the business forward, as discussed in our
Strategy Refresh launched in June. Inventory levels are at their lowest in three years, reflecting
strong demand.

“Catch volumes in wildcatch were affected somewhat by tight crewing on our vessels, as our teams
managed the impact of Covid-19 over the period. Fortunately, we have been mostly successful at
keeping this off our boats, using stringent testing processes.”

In its Greenshell Mussels division, labour limitations have seen Sanford switch volume out of the
higher value half shell product and into meat and whole mussels.

Sanford’s Salmon division sales pricing continues to improve, with slightly softer sales volumes
versus the prior comparable period.

Mr Reidie says the company is keeping a watchful eye on managing mortality levels in changing
climatic conditions.

“We are seeing lower stock in water numbers due to previously reported higher rates of summer
mortalities (3.5% of all fish stock from January to March). We have plans in place to manage risks in
this area for the coming summer, including increasing pen spacing and providing oxygen
enhancement to more of our farm when needed.”

Mr Reidie says that overall “we know we have plenty of work still to do to manage the ongoing
uncertainty we are experiencing, due to a range of factors, including the tight labour market,
inflationary pressures and ongoing waves of Covid-19. However, demand is strong, and our products
continue to be sought after in New Zealand and globally.”

Sanford’s full year results will be announced in November.



See the following pages for graphs containing divisional data


For further information, please contact:
Fiona MacMillan
GM Corporate Communications
+64 (0)21 513 522
fmacmillan@sanford.co.nz

Wildcatch division: quarterly data – sales volume and pricing




Wildcatch division: quarterly data – inventory



12.6
9.6
9.0
10.2
13.0
11.9
16.4
14.3
15.1
9.4
9.0
11.3
11.5
10.4
8.8
-
2
4
6
8
10
12
14
16
18
FY19
Q1
FY19
Q2
FY19
Q3
FY19
Q4
FY20
Q1
FY20
Q2
FY20
Q3
FY20
Q4
FY21
Q1
FY21
Q2
FY21
Q3
FY21
Q4
FY22
Q1
FY22
Q2
FY22
Q3
GWT (000's)
INVENTORY GWT (000's)

Mussels division: quarterly data – sales volume and pricing




Mussels division: quarterly data – inventory

Salmon division: quarterly data – sales volume and pricing




Salmon division: quarterly data – inventory










0.1
0.1
0.1
0.2
0.2
0.1
0.2
0.7
0.9
0.7
0.6
0.5
0.1
0.1
0.1
-
0.2
0.4
0.6
0.8
1.0
FY19
Q1
FY19
Q2
FY19
Q3
FY19
Q4
FY20
Q1
FY20
Q2
FY20
Q3
FY20
Q4
FY21
Q1
FY21
Q2
FY21
Q3
FY21
Q4
FY22
Q1
FY22
Q2
FY22
Q3
GWT (000's)
INVENTORY GWT