Start of Post-Pandemic Recovery, but Omicron Impacts Ahead

10 February 2022

NZX Continuous Disclosure

Sanford Sees Start of Post-Pandemic Recovery, but Omicron Impacts Ahead
New Zealand seafood company Sanford Limited (NZX:SAN) has released a first quarter update for
2022, showing improvements in sales volumes and prices for the period, consistent with the
company’s expectations.
Sales volumes are up 11% versus Q1 2021. Other notable results include:
 Pricing improvements in the wildcatch division (see graphs below for divisional details), but
lower sales volumes on the prior comparable period (pcp), down 12%. Volume impact in
wildcatch offset by favourable pricing, up 24%.
 Strong customer demand for Greenshell mussels saw pricing in this division up 12% versus
pcp and sales volumes up 30%.
 Strong demand in key markets sees salmon sales volumes up 47% versus pcp. Have also
cleared remaining frozen stock in this period.

CEO Peter Reidie says “this is a good result, which shows that things are improving in a way that is
meeting our expectations. We continue to face supply-side challenges around access to labour and
freight costs. Looking ahead, there are additional challenges posed by Omicron.
“These challenges will likely be operational, where the last two years have been defined by
suppressed demand. Now demand is recovering in many of our markets, but we are preparing for
further disruption in local supply chains and for labour issues in a tight labour market.”
Mr Reidie says Sanford is focusing on the challenges the company can control, which includes having
a fully vaccinated workforce, operating teams in bubbles wherever practicable and having plans in
place to manage the absence of key individuals.
Sanford is also acknowledging challenges outside of the pandemic, such as rising ocean
temperatures, which can impact aquaculture operations.
Mr Reidie says “we have seen warmer-than-usual waters in our Big Glory Bay salmon farm for
January. This has had some impact on salmon mortalities, although these were not outside the
previous three year’s average for this month. We are managing this carefully with lower stocking
densities and additional aeration in all our salmon pens. However, the period ahead from March to
May is traditionally a critical one for oxygen levels and algae, so we will continue to monitor and
manage carefully.”
Sanford is exploring options for its crayfish quota, which it fishes and manages through third parties,
which may result in its sale. It intends to reach a decision before the April start of the quota year for
that species.
Sanford also confirms it is on track to communicate the results of its strategy refresh by June, as
previously announced.

Please find fresh imagery from Sanford, free for media use in Dropbox here

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

See following pages for graphs containing divisional data

Wildcatch division: quarterly data – sales volume and pricing



Wildcatch division: quarterly data - inventory



12.6
17.9
12.3
23.2
16.5
20.2
14.2
20.1
14.6
$4.19
$4.47
$3.86
$3.51
$3.53
$3.74
$4.45
$4.01
$4.36
0
5
10
15
20
25
30
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
FY20
Q1
FY20
Q2
FY20
Q3
FY20
Q4
FY21
Q1
FY21
Q2
FY21
Q3
FY21
Q4
FY22 Q1
GWT (000's)
NZD FOB PRICE / GW KG
GWT AND AVERAGE PRICING TREND
Sales volume GWTAverage FOB price / GW kg
13.0
11.9
16.4
14.3
15.1
9.4
9.0
11.3
11.5
-
2
4
6
8
10
12
14
16
18
FY20
Q1
FY20
Q2
FY20
Q3
FY20
Q4
FY21
Q1
FY21
Q2
FY21
Q3
FY21
Q4
FY22 Q1
GWT (000's)
INVENTORY GWT (000's)

Mussels division: quarterly data – sales volume and pricing



Mussels division: quarterly data - inventory



8.0
8.2
10.0
9.1
7.7
9.1
6.7
9.1
8.4
13.2
8.6
$2.92
$2.94
$3.16
$3.21
$3.32
$2.91
$2.32
$2.42
$2.52
$2.74
$2.62
0
2
4
6
8
10
12
14
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
FY19
Q3
FY19
Q4
FY20
Q1
FY20
Q2
FY20
Q3
FY20
Q4
FY21
Q1
FY21
Q2
FY21
Q3
FY21
Q4
FY22
Q1
GWT (000's)
NZD FOB PRICE / GW KG
GWT AND AVERAGE PRICING TREND
Sales volume GWTAverage FOB price / GW kg
4.9
4.9
4.5
7.1
8.5
8.6
11.7
12.4
12.8
5.5
5.5
-
2
4
6
8
10
12
14
FY19
Q3
FY19
Q4
FY20
Q1
FY20
Q2
FY20
Q3
FY20
Q4
FY21
Q1
FY21
Q2
FY21
Q3
FY21
Q4
FY22 Q1
GWT (000's)
INVENTORY GWT

Salmon division: quarterly data – sales volume and pricing



Salmon division: quarterly data - inventory






0.7
0.8
1.1
0.8
0.7
0.9
1.2
1.3
1.2
1.4
1.8
$14.59
$14.94
$14.90
$14.73
$14.82
$14.25
$13.47
$12.82
$13.85
$14.41
$14.56
0.0
0.5
1.0
1.5
2.0
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
FY19
Q3
FY19
Q4
FY20
Q1
FY20
Q2
FY20
Q3
FY20
Q4
FY21
Q1
FY21
Q2
FY21
Q3
FY21
Q4
FY22
Q1
GWT (000's)
NZD FOB PRICE / GW KG
GWT AND AVERAGE PRICING TREND
Sales volume GWTAverage FOB price / GW kg
0.1
0.2
0.2
0.1
0.2
0.7
0.9
0.7
0.6
0.5
0.1
-
0.2
0.4
0.6
0.8
1.0
FY19
Q3
FY19
Q4
FY20
Q1
FY20
Q2
FY20
Q3
FY20
Q4
FY21
Q1
FY21
Q2
FY21
Q3
FY21
Q4
FY22 Q1
GWT (000's)
INVENTORY GWT