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NZ King Salmon lifts earnings guidance

NZ Newswire logoNZ Newswire 25/06/2017 Paul McBeth
King Salmon © Rex Shutterstock/Rex Images King Salmon

New Zealand King Salmon Investments expects annual earning to beat its offer document forecast on strong demand for its products.

The Nelson-based company says pro-forma operating earnings before interest, tax, depreciation and amortisation is forecast to be between $20.5 million and $21 million in the year ending June 30, up from the $19.2 million predicted in its October offer documents and ahead of $16 million a year earlier.

The forecast excludes a $1.8 million gain from a settlement with a supplier announced last month, costs of $800,000 over the proposed relocation of salmon farms, and $2 million of listing expenses.

The earnings upgrade was "due to strong ongoing demand and continued positive fish performance," chief executive Grant Rosewarne said.

Last month the company said fish performance metrics from its peak summer period were in line with expectations, and when reporting a 52 per cent gain in first-half profit earlier this year, King Salmon said it was on track to meet prospectus guidance.

The salmon farmer today said its board kept 2018 guidance for earnings of $22.4 million and net profit of $14.1 million, "based on current market demand and fish performance expectations".

King Salmon will report annual earnings on August 25.

The shares last traded at $1.50, up from their $1.12 listing price in an initial public offering last October.

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