Sanford announces an improved half year result

Sanford Limited
Results announcement




Results for announcement to the market
Name of issuer Sanford Limited
Reporting Period 6 months to 31 March 2024
Previous Reporting Period 6 months to 31 March 2023
Currency New Zealand Dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$275,978 -0.58%
Total Revenue $275,978 -0.58%
Net profit/(loss) from
continuing operations
$16,154 45.41%
Total net profit/(loss) $16,154 45.41%
Interim Dividend
Amount per Quoted Equity
Security
$0.05000000
Imputed amount per Quoted
Equity Security
$0.01944444
Record Date 11 June 2024
Dividend Payment Date 18 June 2024
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.16291626 $2.11421214
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For an explanation on Sanford’s operational results please refer
to the accompanying NZX announcement, investor presentation
and the unaudited Interim Report for the six months ended 31
March 2024.
Authority for this announcement
Name of person

authorised
to make this announcement
Roberto Magaraggia
Contact person for this
announcement
Paul Alston
Contact phone number 021 918 033
Contact email address palston@sanford.co.nz
Date of release through MAP

29 May 2024



Unaudited interim financial statements accompany this announcement.

---

Sanford Limited
Distribution Notice





Section 1: Issuer information
Name of issuer Sanford Limited
Financial product name/description Sanford Limited Ordinary Shares
NZX ticker code SAN
ISIN (If unknown, check on NZX
website)
NZSANE0001S0
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 11 June 2024
Ex-Date (one business day before the
Record Date)
10 June 2024
Payment date (and allotment date for
DRP)
18 June 2024
Total monies associated with the
distribution
$4,675,307
Source of distribution (for example,
retained earnings)
Retained earnings
Currency New Zealand Dollars
Section 2: Distribution amounts per financial product
Gross distribution $0.06944444
Gross taxable amount $0.06944444
Total cash distribution $0.05000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.00882353
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed

Fully imputed
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
$0.01944444
Resident Withholding Tax per
financial product
$0.00347222

Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
N/A N/A
Date strike price to be announced (if
not available at this time)
N/A
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
N/A
DRP strike price per financial product
N/A
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
N/A
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Roberto Magaraggia
Contact person for this
announcement
Paul Alston
Contact phone number 021 918 033
Contact email address palston@sanford.co.nz
Date of release through MAP

29 May 2024

---

Sanford Ltd
22 Jellicoe Street, Auckland 1010
PO Box 443, Shortland Street, Auckland 1140
www.sanford.co.nz
Sanford announces an improved half year result

Sanford announced today an unaudited NPAT of $16.2m, a 46% uplift on the prior comparative
period (pcp), and its highest half year adjusted earnings result in recent times.

Key highlights for the six months ended 31 March 2024:
• Revenue of $276.0m was on par with pcp (HY23: $277.6m)
• Adjusted EBIT
1
of $38.5m, up 45% on pcp, (HY23: $26.6m)
• Net profit after tax of $16.2m, up 46% on pcp (HY23: $11.1m)
• Interim dividend declared of 5.0 cents per share (HY23: 6.0cps)

Newly appointed Managing Director, David Mair, said: “Our first half performance is pleasing with
our highest recent half year adjusted EBIT result. Our improvement has been driven by a continuing
strong performance from the Salmon business; an improving Mussel result; and a positive result for
Wildcatch following the sale of the North Island inshore ACE and related assets in October 2023.

The commoditisation of some nutraceutical products has led to a challenging performance in our
50% held Two Islands investment. As a result, Sanford has written down the value of this business by
$3.3m.”

Gross margin increased from 21% to 25% because of strong pricing across an array of products and a
more targeted sales mix.

Profit after tax was up 46% to $16.2m and includes a $1.0m gain on the sale of assets as part of the
Moana transaction, as well as a reduction in IT implementation costs post the rollout of Sancore
(Sanford’s new IT system).

Net debt increased to $220.5m as at 31 March 2024 (from $183.6m pcp) reflecting capital
expenditure of approximately $24m and funding of increased inventory.

Sanford continues to invest in initiatives to support growth, including the new scampi vessel due
early in the next calendar year. Early-stage sales of marine extracts are now gaining traction but are
not yet at desired performance and profit levels.



1
Adjusted Earnings Before Interest and Tax (EBIT) is EBIT adjusted for net gain on sale of property, plant and equipment
and intangibles, impairment, restructuring costs, software as a service expenditure, other one-off items and gain from
surrender of lease.

Business Performance
HY24 Revenue $m Profit Contribution
2
$m Sales volume GWT
3

Salmon 55.0 23.3 2.5
Mussels 64.8 9.2 14.7
Wildcatch 139.5 26.6 25.3

Salmon
The Salmon business continues to excel, with investment in oxygenation equipment and new netting
enabling Sanford to keep mortalities at low levels and helping meet growing global demand for
Sanford’s high-quality salmon. Pricing remains high and margins have further improved as Sanford
focuses on product mix, smart farming and cost management. Revenue was up 18% on pcp, with a
profit contribution of $23.3m, up 32%.

Mussels
Strong pricing and demand have continued for Sanford’s Greenshell mussels, with a sales shift
towards higher margin half shell product. However, as previously advised, low seeding, particularly in
Coromandel in 2023, is affecting 2024 volumes. Sanford’s earlier investment into the SPATnz mussel
hatchery provides around 20% of Sanford’s requirements, helping to mitigate some of this risk. Early-
stage sales of marine extracts are now gaining traction and the facility is operating more effectively;
however, the opportunity remains challenging and is an area of focus. Revenue was up 16% on pcp,
with a solid 338% increase in profit contribution to $9.2m.

Wildcatch
The Wildcatch business remains the primary revenue generator for Sanford and delivered a slightly
improved profit result. Overall catch volume was down 11% compared to the prior half-year, partially
offset by strong pricing in our most profitable species, scampi. Planned maintenance saw two vessels
in dry dock for a total of 10 weeks, affecting hoki and orange roughy catch. In addition, reduced US
demand for New Zealand orange roughy is impacting export demand. The squid catch remains
challenging across the industry, as was the 2023/24 toothfish season. Lower scampi volumes, due to
an unplanned vessel outage and reduced scampi quotas, were mostly offset by higher pricing.
Sanford’s new scampi vessel is expected to be operational in early 2025. While revenue was down
9% on pcp, profit contribution increased by 6% to $26.6m.

Outlook
Chair of Sanford, Sir Rob McLeod, commented: “We are making excellent progress on our strategy
and Sanford is moving forward with an experienced board and leadership team. We were pleased to
welcome John Strowger and Tom McClurg to the Board in the last six months, and recently
announced new leadership for Sanford with Director, David Mair, taking up the Managing Director
role.


2
Profit contribution is Adjusted EBIT before head office overheads.
3
Greenweight tonnes (000’s).

The new Government is supportive of the seafood and fishing industries, which should assist our
growth ambitions, as we look to expand our farms and increase our harvest, catch and export of
quality seafood to the world.

Following a healthy first half result, we expect a more moderate second half performance in line with
capacity and available inventory. We remain on track to deliver another improved full year
performance in FY24.”

ENDS

For further information, please contact:
David Mair Paul Alston
Managing Director CFO
021 708 021 021 918 033
dmair@sanford.co.nz palston@sanford.co.nz

---

INTERIM REPORT 2024

SANFORD
INTERIM REPORT 2024
2
—
HIGHLIGHTS
—
FOR THE SIX MONTHS ENDED 31 MARCH 2024
SALES REVENUE
$276.0m
▼ 1%
HY23: $277.6m
OPERATING CASHFLOW
$8.3m
▼ 39%
HY23: $13.5m
EPS
17.3 cps
▲ 45%
HY23: 11.9 cps
ADJUSTED EBIT
1
$38.5m
▲ 45%
HY23: $26.6m
INTERIM DIVIDEND
5.0 cps
▼ 17%
HY23: 6.0 cps
CATCH & HARVEST
54.3k GWT
2
▼ 3%
HY23: 56.1k GWT
NET DEBT
$220.5m
▲ 20%
HY23: $183.6m
CUSTOMERS
Greater
than 530
NPAT
$16.2m
▲ 46%
HY23: $11.1m
1. Adjusted Earnings Before Interest and Tax (EBIT) is reported EBIT adjusted for impairment, restructuring costs, software as a service (SaaS) expenditure and other one-off items.
2. Greenweight tonnes (GWT).

3
SANFORD
INTERIM REPORT 2024
—
BUSINESS HIGHLIGHTS
AND NOTABLE EVENTS
—
WILDCATCH
Benefits from sale of North Island
inshore Annual Catch Entitlement
(ACE) helped offset deepwater
catch challenges
ADJUSTED EBIT RESULT
Strong earnings uplift
driven by strategic initiatives
and helped by robust pricing
across key species
SALMON
Strong performance,
with high pricing and
growing global demand
REFRESHED BOARD
AND MANAGEMENT
Appointment of two new
Directors adding further strength
to the Board. David Mair appointed
Managing Director from
01 May 2024
MUSSELS
Significant improvement
over prior half year with
operational improvements
and good in-market conditions
DIVIDEND PAYOUT
Payment of 5.0 cents
per share payable on
18 June 2024
BUSINESS HIGHLIGHTS AND NOTABLE EVENTS

4
SANFORD
INTERIM REPORT 2024
1H24 OVERVIEW
Our first half result is pleasing with our
highest recent half-year adjusted EBIT and
a positive outlook for the full financial year.
Pricing on key species such as salmon,
scampi and mussels have supported this
half-year result. The sale of the North
Island inshore ACE business has also
added a new stable revenue stream.
FINANCIAL PERFORMANCE
Our primary commercial goal remains
improved performance, driven by
increased revenue, higher margins
and cost efficiencies. We are making
progress with an adjusted EBIT of $38.5m,
a 45% increase on the prior first half year,
as well as a 46% jump in profit after tax.
Our improvement has been driven by
a continuing strong performance from
the Salmon business; an improving Mussels
result; and a positive result for the inshore
business following the sale of the North
Island inshore ACE and related assets in
October last year.
Unfortunately, the commoditisation of
some nutraceutical products has led to
a challenging performance in our 50%
held Two Islands investment. As a result,
Sanford has written down the value of this
business by $3.3m.
Gross margin increased from 21% to 25%
due to favourable pricing across an array
of products and a more targeted sales mix.
Net debt increased to $220.5m as at
31 March 2024 (from $183.6m pcp)
reflecting capital expenditure of approx.
$24m and funding of increased inventory
in the period.
Profit after tax was up 46% to $16.2m
and includes a $1.0m gain on the sale of
assets as part of the Moana transaction,
as well as being helped by a reduction in
IT implementation costs post the rollout
of Sancore (Sanford’s new IT system).
We continue to invest in initiatives
to support growth, including the new
scampi vessel, which is due to start sea
trials in early 2025. Early-stage sales of
marine extracts are now gaining traction
but are not yet at desired performance
and profit levels.
Overall, the Directors are pleased with the
financial improvements but acknowledge
there are still opportunities to further lift
Sanford’s performance.
Challenges remain in the marketplace,
including seasonal impacts on our catch
and harvest volumes, as well as economic
conditions driving cost inflation.
INTERIM DIVIDEND
The Board is pleased to have declared an
interim dividend of 5.0 cents per share.
—
CHAIR AND
MANAGING DIRECTOR
REVIEW
—
Sir Robert McLeod
CHAIRMAN
David Mair
MANAGING DIRECTOR
CHAIR AND MANAGING DIRECTOR REPORT

5
SANFORD
INTERIM REPORT 2024
BUSINESS PERFORMANCE
Mussels
HY22HY23HY24
Revenue $m50.555.664.8
Profit Contribution $m0.82.19.2
Sales Volume k GWT16.514.414.7
Robust pricing and demand have
continued for Sanford’s Greenshell
TM

mussels, with a sales shift towards
higher margin half shell product.
The labour and productivity challenges
experienced in the prior year have been
mostly resolved, however, as previously
advised, low seeding, particularly in
Coromandel in 2023, is affecting 2024
volumes. Low seeding and spat volumes
are an industry challenge and the quantum
of this impact will become apparent in
18 months’ time. Sanford’s earlier
investment into the SPAT
nz mussel
hatchery provides around 20% of
Sanford’s requirements, helping
to mitigate some of this risk.
Early-stage sales of marine extracts are
now gaining traction and the facility is
operating more effectively. However,
the opportunity remains challenging and
is an area of focus for the company.
As indicated in our last annual report,
we have introduced flex capacity to
match mussel conditions and are
considering several options to improve
processing efficiency and reduce costs,
particularly in the North Island.
Financial performance for the Mussels
business is improving and results were
above the prior year. Mussels revenue
was up 16% on pcp, with a 338% increase
in profit contribution to $9.2m.
Wildcatch
HY22HY23HY24
Revenue $m141.1153.2139.5
Profit Contribution $m24.525.126.6
Sales Volume k GWT29.328.925.3
The Wildcatch business overall delivered
a slightly improved profit result, with the
sale of the North Island inshore ACE in
October 2023 creating an annuity-like
revenue stream and driving a turnaround.
Deepwater fishing remains the primary
revenue generator for Sanford. Overall
catch volume was down 11% compared
to the prior half-year, partially offset
by strong pricing in our most profitable
species, scampi.
Planned maintenance saw two vessels
in dry dock for a total of 10 weeks,
affecting hoki and orange roughy catch.
In addition, reduced US demand for
New Zealand orange roughy is impacting
export demand. The squid catch remains
challenging across the industry, as was
Salmon
HY22HY23HY24
Revenue $m42.846.555.0
Profit Contribution $m12.217.723.3
Sales Volume k GWT2.92.52.5
The Salmon business continues to excel,
with the investment in oxygenation
equipment and new netting enabling
Sanford to keep mortalities at low levels
and helping meet growing global demand
for our high-quality salmon, despite more
varible climatic conditions.
Pricing remains strong and margins have
further improved as the business focuses
on product mix, smart farming and
cost management.
Revenue was up 18% on pcp, with a
profit contribution of $23.3m, up 32%.
CHAIR AND MANAGING DIRECTOR REPORT

6
SANFORD
INTERIM REPORT 2024
OUTLOOK
Our primary commercial goal remains
improved profitability and increased
returns to shareholders.
Sanford is moving forward with an
experienced Board and leadership team.
The new Government is supportive of the
seafood and fishing industries which will
assist with our growth aspirations.
Following a healthy first half result, we
expect a more moderate second half
performance in line with capacity and
market conditions. We remain on track
to deliver another improved year-on-year
performance in FY24.
Thank you to our shareholders for your
continuing support.
Sir Robert McLeod
CHAIRMAN
David Mair
MANAGING DIRECTOR
the 2023/24 toothfish season. Lower
scampi volumes, due to an unplanned
vessel outage and reduced scampi quotas,
were mostly offset by higher pricing.
The integrity capital investment
programme is ongoing as we continue
to update our fleet and infrastructure.
The build of Sanford’s new scampi vessel
remains on track and is expected to be
operational in early 2025. This will allow
us to fish for longer in the sub-Antarctic
conditions and provide superior engine
efficiency and fishing capability.
While revenue was down 9% on pcp, profit
contribution increased by 6% to $26.6m.
BUSINESS STRENGTH
New Leadership and Refreshed Board
We were delighted to recently announce
that current Director, David Mair,
would be taking up the Managing Director
role from 01 May 2024. He remains on the
Board as Executive Director.
David has significant leadership experience
and has received several top leadership
awards. He was Managing Director of NZX-
listed Skellerup Holdings Limited from
2011 until earlier this year and has been a
Sanford Director since November 2022.
The Board would also like to thank Sanford
Director, Craig Ellison, for his excellent
service as Acting CEO since August 2023.
Craig remains on the Board as a non-
independent Director.
We were pleased to welcome both
John Strowger and Tom McClurg to the
Board in the last six months. Both are
experienced Directors who bring value
to the Sanford Board’s discussions and
strategic oversight.
Our People
Our organisation comprises passionate,
experienced and expert individuals who are
committed to the delivery of high-quality
products, excellent customer service and
sustainable growth for our company.
On behalf of the Board and management,
we would like to acknowledge and thank
them for their efforts. We continue to
invest in training and development and
the creation of career pathways for
our people.
Sustainability
We continue to advocate for sustainable,
commercial fishing and farming practices
and use robust science and data to inform
our commercial decisions on how to
sustainably operate at as best optimal
level as we can.
We are focused on reducing our
carbon footprint and continually look
for opportunities to improve our
efficiencies and reduce emissions.
The build of Sanford’s new
scampi vessel remains on
track and is expected to be
operational in early 2025.
This will allow us to fish for
longer in the sub-Antarctic
conditions and provide
superior engine efficiency
and fishing capability.
—
CHAIR AND MANAGING DIRECTOR REPORT

7
SANFORD
INTERIM REPORT 2024
Sanford’s standard profit measure prepared under New Zealand GAAP is net profit.
Sanford have used non-GAAP measures when discussing financial performance in
this document. The Directors and management believe that these measures provide
useful information as they are used internally to evaluate divisional and total Group
performance and to establish operating and capital budgets. Non-GAAP profit
measures are not prepared in accordance with NZ IFRS (New Zealand equivalents to
International Financial Reporting Standards) and are not uniformly defined, therefore
the non-GAAP profit measures included in this report are not comparable with those
used by other companies. They should not be viewed in isolation or as a substitute
for GAAP profit measures as reported by Sanford in accordance with NZ IFRS.
DEFINITIONS
EBIT: Earnings before interest and taxation.
Adjusted EBIT: EBIT adjusted for net gain on sale of property, plant and equipment and
intangibles, impairment, restructuring costs, software as a service (SaaS) expenditure,
other one-off items and gain from surrender of lease.
Adjusted EBITDA: Adjusted EBIT before depreciation and amortisation.
GAAP TO NON-GAAP RECONCILIATION
GAAP TO NON-GAAP RECONCILIATION
6 Months
ended
31 March
2024
6 Months
ended
31 March
2023
12 Months
ended
30 September
2023
$000$000 $000
Reported net profit for the period (GAAP)16,15411,10910,011
Add back:
Income tax expense
9,833 4,409 7,471
Net interest expense 9,200 5,849 13,522
EBIT 35,187 21,367 31,004
Adjustments:
Net gain on sale of North Island inshore assets
(964) – –
Net loss/(gain) on sale of property, plant and
equipment and intangibles
6 (15) (35)
Impairment of investment in Two Islands
NZ Co Limited
3,333 – –
Restructuring costs 659 341 5,544
Other one-off items 257 31 947
Software as a Service (SaaS) expenditure – 7,074 12,714
Impairment of assets – – 1,418
Receipt from surrender of lease – (2,200) (2,200)
Adjusted EBIT 38,478 26,598 49,392
Add back:
Depreciation and amortisation
17,542 15,529 32,142
Adjusted EBITDA 56,020 42,127 81,534

SANFORD
INTERIM REPORT 2024
8
CONSOLIDATED CONDENSED INCOME STATEMENT 9
CONSOLIDATED CONDENSED
STATEMENT OF COMPREHENSIVE INCOME10
CONSOLIDATED CONDENSED
STATEMENT OF FINANCIAL POSITION11
CONSOLIDATED CONDENSED
STATEMENT OF CASH FLOWS12
CONSOLIDATED CONDENSED
STATEMENT OF CHANGES IN EQUITY14
NOTES TO THE INTERIM FINANCIAL STATEMENTS16
INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2024

9
SANFORD
INTERIM REPORT 2024
Unaudited
6 months ended
31 March 2024
Unaudited
6 months ended
31 March 2023
Audited
12 months ended
30 September 2023
Note$000 $000 $000
Revenue3275,978277,578553,397
Cost of sales(207,350)(220,643)(444,760)
Gross profit68,62856,935108,637
Other income73,4904,3357,500
Distribution expenses(6,515)(6,703)(14,762)
Administrative expenses(19,464)(18,175)(37,877)
Other expenses8(10,979)(15,175)(32,744)
Operating profit35,16021,21730,754
Finance income605532958
Finance expense(9,805)(6,381)(14,480)
Net finance expense(9,200)(5,849)(13,522)
Share of profit of equity accounted investees27150250
Profit before income tax25,98715,51817,482
Income tax expense(9,833)(4,409)(7,471)
Profit for the period16,15411,10910,011
Profit attributable to:
Equity holders of the Company
16,16611,08810,016
Non controlling interest(12)21(5)
16,15411,10910,011
Earnings per share attributable to equity holders of the Company during the period (expressed in cents per share)
Basic and diluted earnings per share (cents)
17.311.910.7
CONSOLIDATED CONDENSED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 MARCH 2024
INTERIM FINANCIAL STATEMENTS

10
SANFORD
INTERIM REPORT 2024
Unaudited
6 months ended
31 March 2024
Unaudited
6 months ended
31 March 2023
Audited
12 months ended
30 September 2023
$000 $000 $000
Profit for the period (after tax)16,15411,10910,011
Other comprehensive income
Items that may be reclassified to the income statement:
Foreign currency translation differences
70607183
Change in fair value of cash flow hedges(1,239)34,26934,270
Deferred tax on cash flow hedges347(9,595)(9,596)
Cost of hedging gains recognised in other comprehensive income–544440
Deferred tax on cost of hedging–(152)(123)
Items that have been reclassified to the income statement:
Amount of treasury share cost expensed/(recovered) in relation to share-based payment
–60(143)
Cost of hedging gain(293)––
Deferred tax on cost of hedging82––
Other comprehensive (loss) income for the period(1,033)25,73325,031
Total comprehensive income for the period15,12136,84235,042
Total comprehensive income for the period is attributable to:
Equity holders of the Company
15,13336,82235,047
Non controlling interest(12)20(5)
Total comprehensive income for the period15,12136,84235,042
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 MARCH 2024
INTERIM FINANCIAL STATEMENTS

11
SANFORD
INTERIM REPORT 2024
CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
Unaudited
6 months
ended
31 March
2024
Unaudited
6 months
ended
31 March
2023
Audited
12 months
ended
30 September
2023
Note$000$000$000
Current assets
Cash on hand and at bank
6,547 11,4126,805
Trade receivables 102,948 98,097104,921
Derivative financial instruments 4,051 4,894 6,170
Other receivables and prepayments 7,367 13,0248,352
Biological assets 57,730 49,05548,300
Inventories 90,548 75,90583,029
Assets held for sale 9 12,807 – 18,828
Total current assets 281,998 252,387276,405
Non-current assets
Property, plant and equipment
235,568 210,955227,254
Right-of-use assets 37,993 41,36740,334
Investments8 1,148 4,2614,383
Derivative financial instruments 10,721 13,915 12,515
Biological assets 15,239 15,82218,226
Intangible assets 491,848 494,264493,196
Total non-current assets 792,517 780,584795,908
Total assets 1,074,515 1,032,9711,072,313
Unaudited
6 months
ended
31 March
2024
Unaudited
6 months
ended
31 March
2023
Audited
12 months
ended
30 September
2023
Note$000$000$000
Current liabilities
Bank overdraft and borrowings (secured)4
–55,00058,000
Derivative financial instruments 4,417 7,3166,138
Trade and other payables 61,106 64,98087,373
Taxation payable 841 4,168 3,625
Lease obligations 13,648 5,455 11,518
Liabilities held for sale 9 13,326 – 13,732
Total current liabilities 93,338 136,919180,386
Non-current liabilities
Bank loans (secured) 4
227,000 140,000145,000
Contributions received in advance 1,703 2,0461,878
Employee entitlements 1,233 1,2381,358
Derivative financial instruments 775 6222,262
Deferred taxation 34,287 26,67826,996
Lease obligations 21,717 33,107 29,482
Total non-current liabilities 286,715 203,691206,976
Total liabilities 380,053 340,610387,362
Equity
Paid in capital
94,690 94,69094,690
Retained earnings 591,572 587,698581,016
Other reserves 7,832 9,5688,865
Shareholder funds 694,094 691,956684,571
Non controlling interest 368 405380
Total equity 694,462 692,361684,951
Total equity and liabilities 1,074,515 1,032,9711,072,313
INTERIM FINANCIAL STATEMENTS

12
SANFORD
INTERIM REPORT 2024
Unaudited
6 months
ended
31 March
2024
Unaudited
6 months
ended
31 March
2023
Audited
12 months
ended
30 September
2023
Note$000$000$000
Cash flows from operating activities
Receipts from customers
290,031 284,044570,872
Interest received 604 532 958
Payments to suppliers and employees (269,813)(258,904)(506,716)
Income tax paid (4,768)(5,897)(9,156)
Interest paid (7,804)(6,262)(14,905)
Net cash flows from operating activities 8,250 13,51341,053
Cash flows from investing activities
Sale of property, plant and equipment
12 31 578
Proceeds from sale of North Island
inshore fishery assets7
6,830 – –
Dividends received from associates 383 – 152
Purchase of property, plant and
equipment and intangible assets
(23,188)(32,463)(64,412)
Acquisition of shares in other companies (278) (174) (347)
Net cash flows from investing activities (16,241)(32,606)(64,029)
Unaudited
6 months
ended
31 March
2024
Unaudited
6 months
ended
31 March
2023
Audited
12 months
ended
30 September
2023
Note$000$000$000
Cash flows from financing activities
Proceeds from borrowings4
24,000 40,00060,000
Repayment of term loans4 – (10,000)(25,000)
Lease payments (10,693) (9,543) (12,360)
Dividends paid to Company shareholders5 (5,610) (9,351) (14,961)
Dividends paid to non controlling
shareholders in subsidiaries
– (3) (3)
Net cash flows from financing activities 7,697 11,1037,676
Net decrease in cash and cash
equivalents
(294)(7,990)(15,300)
Effect of exchange rate fluctuations
on cash held
36 (132)(429)
Cash and cash equivalents
at beginning of the period
(51,195)(35,466)(35,466)
Short term borrowings reclassified
as term loans4
58,000 – –
Cash and cash equivalents
at end of the period
6,547 (43,588)(51,195)
Represented by:
Bank overdraft and borrowings (secured)
– (55,000)(58,000)
Cash on hand and at bank 6,547 11,4126,805
6,547 (43,588)(51,195)
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 MARCH 2024
INTERIM FINANCIAL STATEMENTS

13
SANFORD
INTERIM REPORT 2024
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE SIX MONTHS ENDED 31 MARCH 2024
Reconciliation of profit for the period with net cash flows from operating activities
Unaudited
6 months
ended
31 March
2024
Unaudited
6 months
ended
31 March
2023
Audited
12 months
ended
30 September
2023
Note$000$000$000
Profit for the period (after tax) 16,154 11,10910,011
Adjustments for non-cash items
Depreciation and amortisation
17,542 15,52932,142
Depreciation - Annual Catching
Entitlement (ACE)
3,873 3,4876,882
Impairment of investment in associate8 3,333 – –
Impairment of assets held for sale – – 750
Impairment of property plant and equipment – – 479
Impairment of intangible – – 189
Share-based payment expense/
(recovered)
– 60(143)
Change in fair value of biological assets (6,443)(1,647)(3,296)
Change in fair value of forward
exchange contracts and foreign
currency options
(851)(3,738)(3,243)
Unrealised foreign exchange (gains)/losses (1,425)3,9673,993
Share of profit of equity accounted investees (27)(150)(250)
Increase/(Decrease) in deferred tax 7,720 (1,043)(691)
Decrease in contributions received in advance (175)(173)(341)
Other (7) (65) (65)
23,54016,22736,406
Unaudited
6 months
ended
31 March
2024
Unaudited
6 months
ended
31 March
2023
Audited
12 months
ended
30 September
2023
Note$000$000$000
Movement in working capital
Decrease/(Increase) in trade and other
receivables and prepayments
4,186 (16,826)(17,341)
Increase in inventories (7,505)(8,346)(15,878)
(Decrease)/Increase in trade and other
payables and other liabilities
(24,366)11,81028,886
Decrease in taxation payable (2,801)(446)(996)
(30,486)(13,808)(5,329)
Items classified as investing activities
Loss/(gain) loss on sale of property,
plant and equipment
6 (15)(35)
Gain from sale of North Island inshore
fishery assets7
(964) – –
(958) (15)(35)
Net cash flows from operating activities8,25013,51341,053
INTERIM FINANCIAL STATEMENTS

14
SANFORD
INTERIM REPORT 2024
Share
Capital
Share Based
Payment
Reserve
Translation
Reserve
Cash Flow
Hedge
Reserve
Cost of
Hedging
Reserve
Retained
EarningsTotal
Non
Controlling
Interest
Total
Equity
Note$000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 October 2023 (audited)94,690 – 1,0857,569 211 581,016684,571380684,951
Profit for the period (after tax) – – – – – 16,16616,166(12)16,154
Other comprehensive income
Foreign currency translation differences – – 70 – – – 70 – 70
Hedging losses recognised in other comprehensive income – – – (1,239) – – (1,239) – (1,239)
Deferred tax on change in cash flow hedge reserve – – – 347 – – 347 – 347
Cost of hedging gains recovered to the income statement – – – – (293) – (293) – (293)
Deferred tax on cost of hedging – – – – 82 – 82 – 82
Total comprehensive income – – 70(892)(211)16,16615,133(12)15,121
Distributions to shareholders5 – – – – – (5,610) (5,610) – (5,610)
Balance at 31 March 2024 (unaudited)94,690 – 1,1556,677 – 591,572694,094368694,462
Balance at 1 October 2022 (audited)94,690 143 902(17,105) (106)585,961664,485388664,873
Profit for the period (after tax) – – – – – 10,01610,016(5)10,011
Other comprehensive income
Foreign currency translation differences
– – 183 – – – 183 – 183
Hedging gains recognised in other comprehensive income – – – 34,270440 – 34,710 – 34,710
Deferred tax on change in reserves – – – (9,596)(123) – (9,719) – (9,719)
Amount of treasury share cost recovered in relation
to share-based payment
– (143) – – – – (143) – (143)
Total comprehensive income–(143)18324,67431710,01635,047(5)35,042
Distributions to non controlling shareholders – – – – – – – (3)(3)
Distributions to shareholders5–––––(14,961)(14,961)–(14,961)
Balance at 30 September 2023 (audited)94,690 –1,0857,569211581,016684,571380684,951
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2024
INTERIM FINANCIAL STATEMENTS

15
SANFORD
INTERIM REPORT 2024
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE SIX MONTHS ENDED 31 MARCH 2024
Share
Capital
Share Based
Payment
Reserve
Translation
Reserve
Cash Flow
Hedge
Reserve
Cost of
Hedging
Reserve
Retained
EarningsTotal
Non
Controlling
Interest
Total
Equity
$000 $000 $000 $000 $000 $000 $000 $000 $000
Balance at 1 October 2022 (audited)94,690 143 902(17,105) (106)585,961664,485388664,873
Profit for the period (after tax) – – – – – 11,08811,0882111,109
Other comprehensive income – – – – – – –
Foreign currency translation differences – – 608 – – – 608(1)607
Hedging gains recognised in other comprehensive income – – – 34,269544 – 34,813 – 34,813
Deferred tax on change in reserves – – – (9,595)(152) – (9,747) – (9,747)
Amount of treasury share cost expensed in relation to
share-based payment
– 60 – – – – 60 – 60
Total comprehensive income – 60 608 24,674 392 11,088 36,822 20 36,842
Distribution to non-controlling shareholders – – – – – – – (3)(3)
Distributions to shareholders5 – – – – – (9,351) (9,351) – (9,351)
Balance at 31 March 2023 (unaudited)94,690 203 1,5107,569286587,698691,956405692,361
INTERIM FINANCIAL STATEMENTS

16
SANFORD
INTERIM REPORT 2024
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 31 MARCH 2024
NOTE 1 - GENERAL INFORMATION
Sanford Limited (‘the parent’ or ‘the Company’) is a profit-oriented company that
is domiciled and incorporated in New Zealand. The Company is registered under
the Companies Act 1993 and listed on the New Zealand Stock Exchange (NZX).
The Company is an FMC Reporting Entity for the purposes of Part 7 of the Financial
Markets Conduct Act 2013.
The unaudited interim financial statements presented are for Sanford Limited
(‘Sanford’ or ‘the Group’) as at and for the six months ended 31 March 2024.
The Group comprises the Company, its subsidiaries and its investments in joint
arrangements and associates.
The interim financial statements are prepared in accordance with NZ IAS 34: Interim
Financial Reporting. The interim financial statements and the comparative information
for the six months ended 31 March 2023 are unaudited. The comparative information
for the year ended 30 September 2023 is audited.
The Group is a large and long-established fishing and aquaculture farming business
focused on the farming, harvesting, processing, storage and marketing of quality
seafood products and investments in related activities.
NOTE 2 - BASIS OF PREPARATION
Significant accounting policies
Amendment to NZ IAS 1: Presentation of Financial Statements, Classification
of Liabilities as Current or Non-current
The Amendment to NZ IAS 1: Presentation of Financial Statements, Classification of
Liabilities as Current or Non-current (the Amendment) is effective for the Group in the
financial year ended 30 September 2025. Under the Amendment, an entity classifies
a liability as current unless the entity has a right to defer settlement of the liability for
at least twelve months after the reporting period. The right must also exist at the
reporting date and have substance.
The Group has elected to early adopt the Amendment retrospectively, effective from
1 October 2023. Bank loans drawn under the Group’s working capital facilities are
classified as non-current liabilities at 31 March 2024 as a result. Refer to note 4 for
details. The Amendment has no impact on comparative information for the six months
ended 31 March 2023 or year ended 30 September 2023.
Apart from the early adoption of the Amendment as detailed above, the Group’s
accounting policies have been applied consistently to all periods presented in these
interim financial statements, and have been applied consistently by Group entities.
The interim financial statements should be read in conjunction with the financial
statements for the year ended 30 September 2023.
INTERIM FINANCIAL STATEMENTS

17
SANFORD
INTERIM REPORT 2024
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 31 MARCH 2024
NOTE 3 – SEGMENT REPORTING
The Group’s key operating divisions are:
• wildcatch - responsible for catching and processing inshore and deepwater fish
species; and
• aquaculture - responsible for farming, harvesting and processing mussels and salmon.
Executive management of the Group monitors the operating results of the wildcatch
and aquaculture (mussels and salmon) divisions. Divisional performance is evaluated
based on operating profit or loss. Capital expenditure consists of additions of property,
plant and equipment and intangible assets.
The Group has determined that the divisions above should be aggregated to form
one reportable segment to reflect the farming, harvesting, processing and selling
of seafood products. Further information on segment reporting is included in the
financial statements for the year ended 30 September 2023.
Revenue by geographical location of customers
Unaudited
6 months
ended
31 March
2024
Unaudited
6 months
ended
31 March
2023
Audited
12 months
ended
30 September
2023
$000$000$000
New Zealand 99,729 98,846192,577
North America 65,864 59,729113,123
China 48,089 31,21368,787
Australia 25,888 30,13845,444
Europe 11,037 27,83367,522
Other Asia 9,488 10,65828,859
Japan 6,198 7,02813,569
South Korea 3,266 4,7809,202
Central and South America 1,711 1,2112,288
Pacific 1,509 598861
Hong Kong 1,466 1,9523,927
Middle East 1,380 2,9426,102
Africa 353 6501,136
Revenue 275,978 277,578553,397
The revenue information above is based on the delivery destination of sales.
The Group has two customers accounting for more than 10% of total sales for the current
period across both wildcatch and aquaculture (six months ended 31 March 2023: one
customer, year ended 30 September 2023: two customers).
INTERIM FINANCIAL STATEMENTS

18
SANFORD
INTERIM REPORT 2024
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 31 MARCH 2024
NOTE 4 – BANK LOANS (SECURED)
Carrying and face value
Unaudited
31 March
2024
Unaudited
31 March
2023
Audited
30 September
2023
$000 $000 $000
Balance at beginning of period 203,000 155,000155,000
Bank term loans
Proceeds
24,000 40,00060,000
Repaid–(10,000)(25,000)
Bank overdraft and short term borrowings
Movement
–10,00013,000
Balance at end of period 227,000 195,000203,000
Interest rates applicable6.2% - 6.8%5.8% - 6.1%6.3% - 6.8%
Bank term loans are secured by a general security interest over property and a mortgage
over quota shares.
All borrowings are subject to covenant arrangements. The Group has complied with
all covenants during the period (six months ended 31 March 2023 and year ended
30 September 2023: all covenants were complied with).
The repayment dates of bank term loans outstanding and totalling $227.0m
at 31 March 2024 are:
• 30 November 2025: $40m;
• 15 April 2025: $20m;
• 31 March 2026: $40m (working capital facility)
• 15 April 2026: $15m;
• 30 April 2026: $42m (working capital facility)
• 30 April 2026: $40m
• 30 April 2028: $30m
Interest rates for all loans are floating based on the bank bill rate plus a margin.
The Group’s policy for term loans is to hedge between 25% and 75% of floating
rate debt by using interest rate swaps.
On 28 March 2024, the working capital facilities expiring on 30 April 2024 were
extended to beyond 12 months from the current 31 March 2024 reporting date.
These now expire on 31 March 2026 and 30 April 2026 respectively.
The Group elected to early adopt the Amendment to NZ IAS 1: Presentation of Financial
Statements, Classification of Liabilities as Current or Non-current, effective 1 October
2023. All bank term loans including those drawn under the working capital facilities
are therefore classified as non current liabilities in the Statement of Financial Position
as at 31 March 2024. Refer to note 2 for details on the Amendment.
On 28 April 2023 the Group restructured its loan portfolio such that the total banking
facility limit was reduced from $270.0m to $250.0m.
NOTE 5 – DIVIDENDS
The following dividends were declared and paid by the Company:
On 28 May 2024 the Board declared an interim dividend for the six months
ended 31 March 2024 of 5.0 cents per share (31 March 2023: 6.0 cents per share,
30 September 2023: a final dividend of $5.6m at 6.0 cents per share was approved
by the Board on 13 November 2023 and paid on 6 December 2023).
INTERIM FINANCIAL STATEMENTS

19
SANFORD
INTERIM REPORT 2024
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 31 MARCH 2024
NOTE 6 – FINANCIAL INSTRUMENTS
Carrying amounts and fair values
The following table shows the carrying amounts and fair values of financial assets and
financial liabilities at reporting date.
Unaudited
6 months
ended
31 March
2024
Unaudited
6 months
ended
31 March
2023
Audited
12 months
ended
30 September
2023
Note$000$000$000
Non-derivative financial assets not
measured at fair value
(i)
Trade receivables 102,948 98,097104,921
Cash and cash equivalents 6,547 11,4126,805
Other receivables - advances to associates 137 300 300
Shares in other companies 104 104 104
Non-derivative financial liabilities not
measured at fair value
(i)
Bank overdraft and short term
borrowings (secured)4
–(55,000) (58,000)
Trade and other payables (52,539)(55,334) (75,053)
Bank term loans (secured)4 (227,000)(140,000)(145,000)
Total net non-derivative financial (liabilities)(169,803)(140,421) (165,923)
Unaudited
6 months
ended
31 March
2024
Unaudited
6 months
ended
31 March
2023
Audited
12 months
ended
30 September
2023
Note$000$000$000
Derivative financial assets (liabilities)
measured at fair value
(ii)
Forward exchange contracts 5,335 8,080 314
Foreign currency options–18 (300)
Interest rate swaps 3,476 4,784 7,161
Fuel swaps 769 (2,011) 3,110
Total net derivative financial assets9,58010,871 10,285
(i) Presented at carrying value which is equivalent to fair value.
(ii) Presented at fair value.
Other payables that are not financial liabilities are excluded above (provisions
and employee entitlements: March 2024: $8.6m, March 2023: $9.7m,
September 2023: $12.3m).
INTERIM FINANCIAL STATEMENTS

20
SANFORD
INTERIM REPORT 2024
NOTE 7 – OTHER INCOME
(i) 31 March 2024 – Sale of North Island inshore fishery assets
On 31 October 2023, the agreement for Sanford to lease the Annual Catch Entitlement
(ACE) for much of its quota of North Island inshore species to Aotearoa Fisheries Limited
(Moana) on a long-term basis became unconditional. The transaction included the sale
of two of the Group’s inshore fishing vessels, a selection of processing equipment and
refrigerated vehicles/trailers, and one marine farm comprising three coastal permits in
the Croisilles Harbour. The assets and marine farm license were classified as assets held
for sale (net of impairment) at 30 September 2023.
In the six months ended 31 March 2024 the group received total consideration of
$6.8m for the assets, resulting in a gain on sale of $0.96m that is included in other
income in the income statement for the same period.
For full details on the arrangement, refer to the Group’s financial statements for the
year ended 30 September 2023.
(ii) 31 March 2023 and 30 September 2023 – Lease surrender
Sanford and Port of Tauranga reached an agreement which was settled on 3 October
2022 for Sanford to surrender leases for the Tauranga processing site. Sanford received
$2.2m in compensation for surrendering its perpetual right to the Cross Road lease.
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 31 MARCH 2024
NOTE 8 – OTHER EXPENSES
31 March 2024 – Impairment of Investment in Two Islands Co NZ Limited
The Group impaired its equity accounted investment in Two Islands Co NZ Limited,
including its subsidiary Two Islands Co Australia Pty Limited, by $3.3m during the
six months ended 31 March 2024. The carrying value of the investment at 31 March 2024
is nil.
Two Islands Co NZ Limited and its subsidiary are in the business of manufacturing and
distributing dietary supplements in New Zealand and Australia.
30 September 2023 – Impairment of assets held for sale and redundancy provision
As the long-term ACE lease agreement received clearance from the New Zealand
Commerce Commission on 13 September 2023, the associated assets and marine farm
license were classified as held for sale with depreciation of these assets ceasing on the
same date. The fair value less costs to sell for certain assets were lower than their carrying
amounts at the time of classification as held for sale, resulting in an impairment loss of
$0.7m recognised in the Income Statement.
Further to the above, a provision for redundancy of $3.6m was also recognised, arising
from the Group’s closure of the Auckland processing factory, which was part of the sale
of Sanford’s North Island inshore catching rights and ancillary assets.
INTERIM FINANCIAL STATEMENTS

21
SANFORD
INTERIM REPORT 2024
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 31 MARCH 2024
NOTE 9 – ASSETS HELD FOR SALE
a) Sale of perpetual right to lease
At 30 September 2023 the Group had started to reassess the use of its leased Auckland
premises. The Group commenced negotiations for the sale of its perpetual right to lease
the Auckland premises and on that basis the site leases were classified as held for sale.
These negotiations remain ongoing. The fair value less cost to sell for the right of use
asset is higher than the carrying value. No impairment has been recognised for this asset.
The assets and liabilities specifically relating to the lease of the Auckland premises remain
classified as held for sale.
Unaudited
31 March
2024
Audited
30 September
2023
$000$000
Assets
Right-of-use assets
12,807 18,828
Liabilities
Lease obligations
13,326 13,732
b) Moana transaction
The assets held for sale previously recognised at 30 September 2023 in respect of the
transaction with Aotearoa Fisheries Limited (Moana) completed on 31 October 2023
and is detailed further in note 7 (i).
NOTE 10 – IMPAIRMENT OF ASSETS
Other than that noted in note 8, there have been no other material impairment losses
recognised in the six months ended 31 March 2024 or 31 March 2023, or in the year
ended 30 September 2023.
Impairment testing
The group’s market capitalisation has been below the carrying amount of net assets from
September 2020 onwards with an increasing gap over this time. At 31 March 2024 the
Group’s market capitalisation was $358m (31 March 2023: $383m and 30 September
2023: $364m) and the carrying value of its net assets was $694m (31 March 2023:
$692m and 30 September 2023: $685m). Accounting standards consider this to be an
indicator of impairment.
Assets are tested for impairment whenever there are indications this may exist,
particularly intangible assets with infinite lives, such as the Group’s quota and marine
farm licenses. An assessment of the recoverable amount needs to be made in light of the
indicator. When the carrying value of an asset exceeds its recoverable amount, the asset
is considered impaired and is written down to its recoverable amount. The recoverable
amount is the greater of fair value less cost to sell and its value in use (‘VIU’). In light of
this matter management performed impairment testing at half-year.
For the Group, impairment testing is in respect of the cash generating units (‘CGU’s’)
which contain the New Zealand fishing quota and marine farm licences, wildcatch and
aquaculture respectively. The testing performed as at 31 March 2024 results in positive
headroom between the value of these cash generating units and the carrying amount of
their net assets, indicating that there is no impairment at the cash generating unit level.
INTERIM FINANCIAL STATEMENTS

22
SANFORD
INTERIM REPORT 2024
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
FOR THE SIX MONTHS ENDED 31 MARCH 2024
The recoverable amount of the CGU’s were estimated based on the following significant
assumptions:
• Post tax discount rate of 8.0% to 9.0% were applied (30 September 2023: 7.8% to 8.8%)
• Future cashflows were projected for a period of 5 years and a terminal growth rate of
2.25% (30 September 2023: 2.25%)
• Compound annual growth rates in respect of earnings for New Zealand wildcatch of
3.9% and for aquaculture of 10.8%, between 2025 and 2028.
The recoverable amount of New Zealand wildcatch exceeds its carrying amount by $137m
(30 September 2023: $190m) and aquaculture by $80m (30 September 2023: $88m).
Sensitivity analysis
The Group has conducted analysis of the sensitivity of the impairment test to changes
in key assumptions used to determine the recoverable amounts for the applicable CGUs.
The recoverable amounts in the New Zealand wildcatch and aquaculture CGUs are not
sensitive to reasonably possible changes in assumptions of the group’s terminal growth
and discount rates. However, the recoverable amounts are sensitive to reasonably possible
changes in assumptions of the group’s earnings growth expectations. For the aquaculture
CGU, if the FY25 forecast earnings assumption was assumed to continue with no growth
through to FY28, then the carrying amount would approximately equal the recoverable
amount. For the New Zealand Wildcatch CGU earnings would have to fall by a CAGR of
4.9% over the modelled period for the carrying amount to equal the recoverable amount.
NOTE 11 - CONTINGENT LIABILITIES AND COMMITMENTS
(a) Contingent liabilities
Unaudited
31 March
2024
Unaudited
31 March
2023
Audited
30 September
2023
$000$000$000
Guarantees801 801 801
The Group has guarantees with its commercial banking partners. In this respect the
Group treats the guarantee contracts as contingent liabilities until such times as it
becomes probable that the Group will be required to make payments under
the guarantees.
(b) Commitments
The estimated capital expenditure for property, plant and equipment contracted
for at reporting date but not provided is $16.2m (31 March 2023: $28.6m,
30 September 2023: $22.4m).
NOTE 12 - SUBSEQUENT EVENTS
North Island Mussels Limited processing plant closure
North Island Mussels Limited (NIML) is a joint operation in which Sanford Limited has 50%
shareholding to farm, process and sell mussels. On 1 May 2024, Sanford announced to
staff at NIML based in Tauranga, that the processing plant will be closed in the coming
months. The net book value of NIML’s property, plant and equipment held in the Group’s
Consolidated Condensed Statement of Financial Position is $10.3m.
Interim dividend approval
The Board approved an interim dividend for the six months ended 31 March 2024 on
28 May 2024. Refer to note 5 for details.
INTERIM FINANCIAL STATEMENTS

23
SANFORD
INTERIM REPORT 2024
DIRECTORY
BOARD OF DIRECTORS
Sir Robert McLeod, Chairman
Craig Ellison
David Mair
Tom McClurg
John Strowger
EXECUTIVE TEAM
David Mair, Managing Director
(effective 01 May 2024)
Paul Alston, Chief Financial Officer
Debra Lumsden, Chief People Officer
Richard Miller, Executive GM Salmon
Andrey Stanley, Executive GM Mussels
Paul Turnbull, Acting Co-executive
GM Wildcatch
Colin Williams, Acting Co-executive
GM Wildcatch
Vaughan Williamson, Executive GM
Strategy and Innovation
Louise Wood, Executive GM Supply
Chain & Operations
REGISTERED OFFICE
22 Jellicoe Street
Freemans Bay
Auckland 1010
New Zealand
PO Box 443
Shortland Street
Auckland 1140
New Zealand
Telephone +64 9 379 4720
Email info@sanford.co.nz
Website www.sanford.co.nz
PRINCIPAL BANKERS
ANZ Bank New Zealand Limited
Bank of New Zealand
Rabobank New Zealand Limited
SOLICITORS
Chapman Tripp
Russell McVeagh
GROUP AUDITORS
KPMG, Auckland
STOCK EXCHANGE
The Company’s shares trade on the
New Zealand Stock Exchange (NZX).
NZX Trading Code: SAN
SHARE REGISTRAR
Computershare Investor Services Limited
Private Bag 92 119
Victoria Street West
Auckland 1142
New Zealand
159 Hurstmere Road
Takapuna
Auckland 0622
New Zealand
MANAGING YOUR
SHAREHOLDING ONLINE
To change your address, update your
payment instructions and to view
your investment portfolio including
transactions please visit:
www.investorcentre.com/nz
GENERAL ENQUIRIES
General enquiries can be directed to:
enquiry@computershare.co.nz
Private Bag 92 119
Victoria Street West
Auckland 1142
New Zealand
Telephone +64 9 488 8777
Please assist our registrar by quoting
your CSN or shareholder number.
Other queries should be directed to
the General Counsel and Company
Secretary at the Registered Office.

SANFORD.CO.NZ

---

Results Briefing
For the six months ended
31 March 2024

Disclaimer
Important Notice
This presentation contains not only a review of operations and information about Sanford Limited (the Company), but also contains some forward-looking
statements about the Company and the environment in which it operates. This disclaimer applies to this presentation and any written or verbal communications
in relation to it.
Information has been prepared by the Company with due care and attention. However, neither the Company, nor any of its directors, employees or shareholders
nor any other person gives warranties or representations (express or implied) as to the accuracy or completeness of this information. To the maximum extent
permitted by law, none of the Company, its directors, employees, 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 information suppliedin connection with it.
This presentation contains financial information taken from management accounts and from the Company’s unaudited results for thesix months ended 31
March 2024.
This presentation also contains forward-looking statements regarding a variety of items. Such forward-looking statements are based on current expectations,
estimates and assumptions and are subject to a number ofrisks, and uncertainties, including material adverse events, significant one-off expenses and other
unforeseeable circumstances on the Company. There is no assurance that results contemplated in any of these 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 the 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.
Media releases, management commentary and analysts’ presentations, including those relating to the previous results announcement, are all available on the
Company’s website and contain additional information about matters which could cause Sanford Limited’s performance to differ from any forward-looking
statements in this presentation. This presentation should be read in conjunction with the material published by Sanford Limited.
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 sell, or a solicitation of an offer to buy, any security and may not be relied uponin connection with the purchase or
sale of any security. Nothing in this presentation constitutes legal, financial, tax or other advice.
Please note : All financial metrics provided in this document are unaudited.
2

Half Year (HY24)
Results Summary

HY24 Summary
4
NPAT of $16.2m, up 46% on PCP.
•Salmon division continues to perform strongly.
•Improvement in mussel profitability.
•Wildcatch steady – positive impact from inshore restructure.
Adjusted EBIT at $38.5m up 45% on the HY23.
•Highest adjusted EBIT in recent history.
•Significantly reduced Sancore development costs.
•Market conditions improvement – strong prices, reduced fuel costs and
improved labour availability.
Operating cashflow of $8.3m down 39% on PCP.
•Timing of working capital.
•Increased inventory to be sold through in H2.
Interim dividend of 5.0 cents per share.
•Reduction of 1.0 cent per share on HY23, having regard to H2 capital
requirements and current debt levels.
Net debt at $220.5m up 20% on $183.6m in HY23
•Reflects capex spend of $23.2m and funding of increased working capital
(inventory).
Capital spend for first half mostly integrity related.
Focus on simplification of sales channels.

HY24 Key Financials
5
An improved result for HY24. Strong salmon
performance, improved mussel result and a
positive return from the inshore business.
•Revenue slightly down on pcp (exit of inshore
business).
•EBIT up $13.8m or 64% on pcp.
•NPAT up $5.1m or 46% on pcp.
•Earnings per share increase from 11.9c to
17.3c.
•Net debt at $220.5m, up $36.9m on HY23
reflecting the capital spend of approx. $23.2m
and the funding of working capital (inventory)
in the period.
•Operating cashflow at $8.3m for the 6 months,
funding capital expenditure of $23.2m.
•Gearing increase to 25%, reflecting the
increased debt for the period.

Sanford-half year results
NZ$ MillionHY15HY16HY17HY18HY19HY20HY21HY22HY23HY24
Revenue226.0215.6230.4272.8265.0245.5233.5270.9277.6276.0
Adjusted EBIT24.926.831.035.432.623.210.719.226.638.5
Adjustments( 6.7)3.0( 0.8)7.13.55.312.7( 5.6)( 5.2)( 3.3)
EBIT18.229.830.242.536.128.523.413.621.435.2
Interest4.94.04.24.24.24.44.74.35.89.2
PBT13.325.826.038.431.924.118.89.315.526.0
Tax3.87.07.011.19.05.12.63.24.49.8
Reported Profit9.618.819.027.322.919.016.26.111.116.2
Earnings (cents per share)10.220.120.429.224.420.314.76.511.917.3
Dividend (cents per share)9.09.09.09.09.05.00.00.06.05.0
Net debt185.3170.0195.9181.1165.1157.8181.0175.6183.6220.5
Operating cashflow1.71.610.722.810.412.74.535.813.58.3
Capital expenditure9.89.620.79.620.323.820.024.332.523.2
Total equity537.6537.5563.5588.1593.6584.7635.3646.1692.4694.5
Gearing (%)26.2%24.9%26.3%24.0%22.1%22.1%23.9%21.9%22.0%24.6%

Improved Profitability driven by Salmon & Mussels
6
NZD $M
Key drivers of Adjusted EBIT change vs HY23

Improved Profitability driven by Salmon & Mussels
7
Wildcatch drivers +$1.5m
Salmon drivers +$5.6m
Mussel drivers +$7.1m
Group
Costs
($2.1m)
NZD $M
Key drivers of Adjusted EBIT change vs HY23
Australia
($0.2m)

Gross Margin Positive Movement
•Gross margin improvement reflecting
positive in-market prices and channel
simplification with reduced fuel prices and
positive mix changes.
•Reduction in sales costs also a driver of
improved margins.
8

Seafood Inventory
* Inventory value differs to financial statements as above excludes non-seafood inventory
9
Inventory Volume (PWT)
Inventory Value ($m)
*
HY24 vs HY23 increase +12.6%
HY24 vs HY23 YOY increase +27.3%
*
*
•Increase in inventory - mainly in wildcatch. Plans in place to reduce in 2H.

Capital Expenditure
•91% of the capital spend on integrity projects
and Health and Safety.
•No further costs capitalised for the Sancore IT
project.
•Vessel surveys are the main spend for the first
half and are stay in business capex.
•Progress payments on Scampi vessel other
large cost.
HY24HY23
Integrity$20.7m$20.7m
Vessel surveys $12.7m
Processing equipment $0.5m
Mussels $1.1m
Salmon $1.3m
Wildcatch Scampi Boat $5.1m
Vessel surveys $7.4m
Processing equipment $1.3m
Mussels $1.5m
Salmon $1.5m
Wildcatch Scampi Boat $7.8m
IT systems - Business $1.2m
Growth$2.5m$8.7m
Salmon development $1.2m
Mussel development $1.3m
Salmon development $3.9m
Mussels development $0.8m
Marine extracts $4.0m
Sancore $0$2.1m
To t a l$23.2m $31.5m
10

Divisional Performance
Divisional Performance

Salmon HY24
12
Strong pricing and ongoing growth in Big Glory Bay driving improved revenue and profit
contribution
•Volume remains steady – up 1% on pcp.
•Revenue increase due to strong in-market pricing, favourable mix and further growth in Big Glory Bay.
•Profit contribution up 32% on pcp.

Salmon HY24
Pricing uplift driven by favourable mix, BGB growth and strong pricing.
Inventory levels well managed.
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•Low inventory levels. Predominantly a fresh business with low stock holdings.
•Q2 lift in prices due to a change in mix.

Salmon HY24
14
•Year on year profit growth.
•Prices up across most categories, Big Glory Bay volume increase.
•Mix changes away from portions, maximising returns.
•Reduced and stable mortalities; positive impact of mitigation measures on farms.
•Reduction of freight costs and more favourable foreign exchange rates.
•Fish growth rates and feed conversion rate improvement.
•New feed barge arrives in Q3 that will improve efficiencies.
•Farms in Stewart Island close to maximum capacity – limited growth opportunities within existing infrastructure.
•Consent process for new water space continuing.

Wildcatch HY24
15
Strong performance post inshore divestment, strong Scampi pricing.
•Reduced volumes and revenue mainly as a result from the exit from the inshore business.
•Profit contribution up 6% on HY23 from strong pricing on key species and improved inshore profitability.

Wildcatch HY24
Pricing improvement across most key species. Inventory build with plans to reduce.
16
•Increase in inventory from past four quarters.
•Increase mainly in Hoki, orange roughy and squid – Demand still positive and plans to sell through and reduce holdings by end
of financial year.

Wildcatch HY24
17
•Inshore divestment completed in October 23 - reduction in sales volume,
but increase in profitability.
•Good demand for scampi with improved prices, but total volume will be
reduced due to failure to secure crown ACE for the year.
•Fishmeal sales and price increases.
•Delayed ATO toothfish catch impacting H1 – will flow through into H2.
•Squid catch has been slow – recent catch has improved and likely a small
increase from last year.
•Inventory being monitored closely and aim to reduced working capital and
debt by year end.
•New scampi vessel (San Koura Rangi) build progress in line with
expectations, with completion by end of calendar year and delivery by Q1
2025.

Mussels HY24
18
Profit Contribution recovery driven by stronger pricing and operational efficiencies.
•Volume in line with pcp.
•Strong in-market prices and positive mix change towards half shell mussels away from meat and
whole mussels.
•Contribution improvement reflecting better pricing, mix and improved efficiencies.

Mussels HY24
Pricing continues on strong growth trajectory. Inventory levels remain normalised.
19
•Inventory at consistent levels in last 3 quarters, reduction by 21% from pcp.
•Half shell demand remains high.

Mussels HY24
20
•Mussel stronger performance helped by operational improvements and more favourable in-market conditions. Labour
and productivity challenges experienced in the prior year have been mostly resolved.
•Pausing of operations at the Coromandel NIML processing plant to third party tolling due to low volumes in the region.
Low seeding and spat volumes in Coromandel will impact for the next 18 months to two years.
•SPATnz mussel hatchery provides around 20% of Sanford’s requirements, helping to mitigate some of this risk. Constant
improvements being made in this business.
•Early-stage sales of marine extracts are now gaining traction and the facility is operating more effectively. However, the
opportunity remains challenging and is an area of focus for the company.
•Commoditisation of some nutraceutical products has led to a challenging performance in our 50% held Two Islands
investment. Written down the investment of this business by $3.3m.
•The mussel division has enough waterspace to expand significantly, viability of spat and seed an ongoing issue,
particularly in the Coromandel.

Summary
21
•An improved year with increased profitability and a positive outlook for the full financial year.
•Gross margin improvements reflecting good pricing, channel simplification and favourable in-market conditions.
•Capital spend for the year is mostly integrity related and has to be managed carefully within operating cashflows,
dividend payments and debt levels.
•Inventory levels have increased. Some is timing related and expectations are that there will be a reduction in H2.
•A new Managing Director and refreshed board now in place with a focus on growth and improved shareholder returns.
•There will also a focus in the second half on overheads and efficiencies.
•Continue to advocate for sustainable commercial fishing and farming practices and focus on reducing our carbon
footprint.

Craig Ellison
Independent Non-Executive Director
Appointed to the Board in 2021
David Mair
Managing Director
Appointed to the Board in 2022
John Strowger
Non-Executive Director
Appointed to the Board in 2023
Tom McClurg
Independent Non-Executive Director
Appointed to the Board in 2024
Sir Robert McLeod
Chairman, Independent Non-Executive Director
Appointed to the Board in 2016, appointed Deputy
Chair 2018, appointed Chairman in 2019
Directors and Executives
22

LOOKING FOWARD
Questions?

HY24 GAAP TO NON-GAAP RECONCILIATION
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