Momentum Continues For Pricing and Demand, Lower Volumes

24 August 2023
Q3 FY23 Update: Momentum Continues For Pricing And Demand, Lower Volumes

New Zealand seafood company Sanford Limited (NZX:SAN) has released its third quarter update for
FY23 (for the three months ended June 2023). The strong prices in Wildcatch, Salmon and Mussels
experienced in earlier months of the year have been maintained, but volumes were impacted by
reduced squid and ling catch and reduced mussel volume caused by adverse climatic and water
conditions.

Notable results include:

● Wildcatch: Pricing up 30.9% on the prior comparable period (pcp) of Q3 FY22. Sales volumes
in this quarter were down 6.1k GWT on pcp, due to reduced squid and ling catch, as well as
some timing of sales. The higher overall pricing was driven in part by mix with improved scampi
prices and reduced lower priced squid sales.
● Mussels: Pricing up 35.9% up on pcp. Q3 FY22 had been impacted by the lag effect of lower
priced contracts (covid driven), which have now been settled. Q3 FY23 had a more favourable
mix of product with an increased percentage of target sized half shell mussels and less lower-
priced meat products. However, sales volumes were down 20.7% because of extreme weather
conditions impacting harvesting days in the Coromandel, and water space closures in some
parts of both islands due to the presence of biotoxins.
● Salmon: Pricing remains strong for the Salmon division, up 20.3% on pcp. Sales volumes remain
consistent with the same quarter in FY22 and with pre-covid sales levels.
CEO Craig Ellison says: “Pricing remains encouraging for all divisions, and it is pleasing that demand,
particularly in export markets, is strong.”

“However sales volumes are down across the group on the same quarter last year.”

“Salmon continues to be the standout for the group with strong demand for King Salmon and the Big
Glory Bay brand. Risk mitigation initiatives introduced earlier in the year have also helped keep the
salmon healthy and reduce the impact of mortalities.”

“We expect the Salmon division to continue this momentum into Q4 this year.”

The Mussel division continues to lag the other businesses and has been adversely impacted this
quarter by increased water space closures and inclement weather.

Mr Ellison says the mussel division is seeing early signs of recovery now there is a full complement of
staff at both North and South Island factories. The fourth quarter is when mussel spawning usually
occurs, and annual factory shutdowns are timed to match this event, so full production levels are not
expected until the new season.

“In the last couple of months labour constraints in the mussel division have been largely addressed
and we look forward to increased production once the factories reopen in September.”

“The new bioactives plant, commissioned earlier in the year, continues to experience productivity
issues and is behind expectations. This is an area of focus for the business.”

Wildcatch has been impacted by the reduced squid and ling catch this quarter and only partially offset
by redirecting vessels to catch alternative species. Demand and prices for whitefish remain strong,
however the inshore business continues to underperform and a decision from the Commerce
Commission is due in September. If favourable, and the other condition is satisfied, the decision will
result in the sale of inshore ACE to Moana and improved profitability for Sanford.

Mr Ellison says that “the Sanford team continues to focus on optimising operations to take advantage
of the favourable seafood market conditions, including strong demand for our products.”


See the accompanying pages for graphs containing divisional data.


For further information, please contact:
Paul Alston
Chief Financial Officer
palston@sanford.co.nz
021 918 033

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MARKET UPDATE
Q3 FY23

DISCLAIMER
Important Notice
This presentation contains not only a review of operations and information about Sanford Limited (the Company) but may also contain some forward-looking statements about the Company and the
environment in which it operates.
Information has been prepared by the Company with due care and attention. However, neither the Company, nor any of its related companies, directors, officers, employees, agents, advisers or
shareholders nor any other person gives warranties or representations (express or implied) as to the accuracy, completeness, value or reasonableness of this information. To the maximum extent
permitted by law, none of the Company, its related companies, directors, officers, employees, agents, advisers, shareholders or any other person shall have any liability whatsoever to any person for
any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any informationsupplied in connection with it.
This presentation contains financial information taken from management accounts for the quarter ended 30 June 2023.
To the extent this presentation contains forward-looking statements, such forward-looking statements are based on current expectations, estimates and assumptions and are subject to a number of
risks, and uncertainties, including material adverse events, significant one-off expenses and other unforeseeable circumstances,including further impacts from Covid-19 on the Company. There is no
assurance that results contemplated in any forward-looking statements will be realised, nor is there any assurance that the expectations, estimates and assumptions underpinning those forward-
looking statements are reasonable. The Company’s actual results may differ materially from any forward-looking statements in this presentation. No person is under any obligation to update this
presentation at any time after its release. Investors are strongly cautioned not to place undue reliance on forward-looking statements.
NZXreleases, management commentary and analysts’ presentations, including those relating to the previous results announcement, areall available on the Company’s website and contain additional
information about matters which could cause the Company’s performance to differ from any forward-looking statements in this presentation. This presentation should be read in conjunction with
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The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. The presentation does not constitute an offer to
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other advice.
This disclaimer applies to this presentation and any written or verbal communications in relation to it.
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Please note : Some of the financial metrics provided in this document are management figures and are unaudited.

CRAIG ELLISON INTRODUCTION
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•Long involvement in the Fisheries and Seafood sector including
running the marketing, finance and quota management for his
family company, Ōtākou Fisheries.
•Past Chief Executive of Ngāi Tahu Holdings, Chair of Ngāi Tahu
Seafood, Poutama Trust, Moana Pacific, Prepared Foods, the NZ
Seafood Standards Council, as well as serving on the executive of
the Fishing Industry Association Board, and numerous stakeholder
organisations.
•Previously served on the Board of Airways New Zealand, NIWA, the
Trade Liberalisation Network, New Zealand Trade and Enterprise,
and Co-chaired the PECC Fisheries Task Force (with Chinese Taipei).
•Craig was a Commissioner with the Treaty of Waitangi Fisheries
Commission (Te Ohu Kai Moana).
•Craig served on the board of Aotearoa Fisheries and through that on
the boards of Moana and Sealord. He was also a member on the Te
Ohu Kai Moana review panel.
•Graduate from Otago University with a Masters in Zoology.

Q3 FY23: STRONG DEMAND & PRICING SUSTAINED, LOWER VOLUMES.
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* Pricing remains above pre-covid levels in all divisions.
* Demand for Sanford products remains strong, particularly in export markets.
* Sales volumes are below pcp due to reduced catch (particularly squid), extreme weather and
closure of some water space areas impacting mussel performance.
* Wildcatch:pricing up 31% vs. pcp driven by a general increase in prices and improved mix with
less-lower priced squid sales. Sales volumes down36.5% vs Q3FY22
* Mussels:pricing up 36% vs. pcp due to favourable product mix. Sales volumes down 21% vs pcp.
* Salmon:pricing up 20% vs pcp driven by strong demand and reduced fish mortality. Sales volume
consistent with pcp and with pre-covid levels.

WILDCATCH DIVISION: Q3 QUARTERLY DATA – SALES VOLUME AND PRICING
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1. Average FOB Price/GWkgis calculated with reference to total external division revenue (previous presentations FOB price/GWkgincluded was on Seafood Sales only)

WILDCATCH DIVISION: Q3 QUARTERLY DATA - INVENTORY
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MUSSEL DIVISION: Q3 QUARTERLY DATA – SALES VOLUME AND PRICING
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1. Average FOB Price/GWkgis calculated with reference to total external division revenue (previous presentations FOB price/GWkgincluded was on Seafood Sales only)

MUSSEL DIVISION: Q3 QUARTERLY DATA – INVENTORY
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SALMON DIVISION: Q3 QUARTERLY DATA – SALES VOLUME AND PRICING
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1. Average FOB Price/GWkgis calculated with reference to total external division revenue (previous presentations FOB price/GWkgincluded was on Seafood Sales only)

SALMON DIVISION: Q3 QUARTERLY DATA - INVENTORY
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