NZ King Salmon Investments Ltd releases FY25 results
27 March 2025
NZK - NEW ZEALAND KING SALMON INVESTMENTS LIMITED ANNOUNCES FY25 RESULT
New Zealand King Salmon Investments Ltd (NZX & ASX: NZK) reports its financial performance for the
year ended 31 January 2025 (FY25). Key points include:
• FY25 net profit for the year of $13.4 million, compared to a net profit for the year of $28.5 million in
FY24.
• FY25 Pro-Forma EBITDA was a profit of $29.7 million, compared to an EBITDA profit of $24.5
million in FY24.
• Revenues increased from $187.1 million in FY24 to $210.9 million in FY25 (an increase of 13%).
New Zealand King Salmon Chair Mark Dewdney said: “We have continued to make solid improvement
during FY25. Our teams throughout the business have worked incredibly hard during the year, and our
strong financial performance is a credit to them. Our strong balance sheet gives us the confidence, and
ability to invest in our future growth plans, which are anchored by our Blue Endeavour open ocean farm.”
“Looking toward FY26. We were pleased to announce our entry into a significant, multi-year government
partnership under the Ministry for Primary Industries Sustainable Food and Fibres Futures fund. This will
greatly assist our growth investments in the years ahead. Unfortunately, on the other hand we have
experienced elevated mortality as we start FY26, following two summers of low mortality. This elevated
mortality will result in a reduction in both our harvest and earnings for FY26. These events can occur in
primary sector businesses, and this is why we need to maintain a strong balance sheet. This combined
with a strong focus on risk will ensure we can continue to pursue our growth strategy. We are confident
that we can do this.”
New Zealand King Salmon Chief Executive Officer Carl Carrington said: “While we are pleased with the
continued improvements to our financial performance, our investment in to our new strategy,
understanding our organisational capabilities and our risk management framework is designed to
prepare our company to achieve further growth and improvements. In terms of our market potential,
consumer demand for King salmon remains high. We see major growth opportunities in key markets,
such as North America, Australia and China. We are actively planning sales and market development
to ensure the increased supply from Blue Endeavour meets growing demand.”
Acknowledging the above, Carl noted, “The foundation of our success will always be our fish.
Maintaining our ‘fish come first’ approach is essential, as healthy, thriving fish are key to both our growth
and long-term sustainability. By prioritising their welfare, we safeguard our stable core business and
drive steady improvements — one eye on the now, and the other on the future. This is underpinned by
our new strategic purpose statement ‘towards a healthier tomorrow.’ FY26 is shaping up to be an
exciting year for New Zealand King Salmon with the Blue Endeavour opportunity becoming operational,
albeit on a pilot scale. We are scheduled to have our Blue Endeavour fish at the Waihinau site in April,
with these fish being transferred to the Blue Endeavor site in October, this represents another important
milestone for the Company.”
The Board is providing Pro-Forma EBITDA guidance in a range of $15m - $24m for FY26.
Authorised by:
Board of Directors of New Zealand King Salmon Investments Limited
For investor or analyst queries, please contact:
Carl Carrington, CEO, New Zealand King Salmon Investments Ltd, carl.carrington@kingsalmon.co.nz
Ben Rodgers, CFO and Company Secretary, New Zealand King Salmon Investments Ltd,
ben.rodgers@kingsalmon.co.nz
---
NZK
Results announcement
31 January 2025
Results for announcement to the market
Name of issuer New Zealand King Salmon Investments Limited
Reporting Period 12 months to 31 January 2025
Previous Reporting Period 12 months to 31 January 2024
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$210,993 13%
Total Revenue $210,993 13%
Net profit from continuing
operations
$13,359 (53%)
Total net profit $13,359 (53%)
Interim/Final Dividend
Amount per Quoted Equity
Security
Nil
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.37 $0.36
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Authority for this announcement
Name of person
authorised
to make this announcement
Ben Rodgers
Contact person for this
announcement
Ben Rodgers
Contact phone number 03 548 5714
Contact email address
ben.rodgers@kingsalmon.co.nz
Date of release through MAP
27/03/2025
Audited financial statements accompany this announcement. Pursuant to ASX Listing
Rule 1.15.3, New Zealand King Salmon Investments Limited confirms that it continues
to comply with the rules of its home exchange (the NZX Main Board)
---
ANNUAL REPORT FY25
Towards a
Healthier Tomorrow
Contents
Overview .................................................3
Healthy Economies ..................................16
Healthy Environments ..............................22
Healthy Relationships ..............................30
Healthy Communities ..............................34
Healthy Kai .............................................42
Leadership & Corporate Governance ...........52
Financial Statements ...............................96
Paul Munro
Chair - Audit, Finance
and Risk Committee
Mark Dewdney
Chair
The Annual Report is dated 27 March 2025 and signed on behalf of
the Board by:
Cover image: Te Pangu, Tory Channel/Kura Te Au.
2New Zealand King SalmonAnnual Report FY25 — ContentsAnnual Report FY25 — Contents
Overview
3New Zealand King SalmonAnnual Report FY25 — OverviewContents
Chair and
CEO Report
Turning Strategy into Action
This year has been one of planning and strategising
as we prepare to become the world’s first open ocean
King salmon farmers at our Blue Endeavour site. For the
past decade, our production has been capped while
awaiting access to new marine space. Blue Endeavour
will unlock future growth for both New Zealand King
Salmon (NZKS) and Aotearoa New Zealand’s emerging
aquaculture sector.
To seize this opportunity, we have developed a growth-
focused strategy and a fit-for-purpose organisational
structure. Our clear purpose and roadmap position us for
long-term success.
We introduced this strategic reset in our previous Annual
Report and company updates. This year, we’ll reveal more
about our new company purpose.
Ensuring we have a solid strategy and
an accountable action plan, backed
by the organisational capabilities to
implement it, has been priority number
one this year.
Carl Carrington
Chief Executive Officer
Blue Endeavour will unlock future growth
for both NZKS and Aotearoa New Zealand’s
emerging aquaculture sector.
Mark Dewdney
Chair
Te Pangu, Tory Channel/Kura Te Au
4
New Zealand King SalmonAnnual Report FY25 — OverviewContents
This broad and aspirational purpose
acknowledges that health is at the core of
our company — driving everything we do,
from the health of our fish and teams to our
customers, communities, and environment.
Health is what we aim to contribute to
and what we depend on. Health is the
foundation of wealth and without it, long-
term prosperity is not possible.
We intentionally use the word ‘healthier’
to reflect a direction of progress. We are
developing meaningful metrics to track this
progress and will share more details in time.
Our efforts focus on five key dimensions:
healthy economies, healthy environments,
healthy relationships, healthy communities,
and healthy kai.
Our Purpose Statement —
Towards a Healthier Tomorrow
Health is at the core of our
company — driving everything
we do, from the health of
our fish and teams to our
customers, communities,
and environment.
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We understand that while words and
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therefore structured this year’s Annual
Report around this purpose statement and
the five dimensions, to show how we are
turning our strategy into action, and to
track our progress meaningfully against
our own goals.
5New Zealand King SalmonAnnual Report FY25 — OverviewContents
our operations — locally, nationally, and globally — we can
strengthen our social license to operate and ensure long-
term support and trust in our future.
The foundation of our success will always be our fish.
Maintaining our ‘fish come first’ approach is essential, as
healthy, thriving fish are key to both our growth and long-
term sustainability.
However, the natural environment will always pose
challenges for our fish, as we saw with our March 2025
disclosure to the market that warmer summer sea
temperatures have impacted our FY26 harvest volumes and
profitability. Prolonged elevated water temperature can
increase stress, reduce the salmon’s resistance to bacteria
and other pathogens, and also reduce growth rates.
We know we must never take our focus off our fish
and our natural challenges — it also underscores the
importance of the investments we are making in improved
fish health outcomes to further mitigate risk, such as
in thermotolerance, vaccine development and diets. By
prioritising the welfare of our fish, we safeguard our stable
core business and drive steady improvements — one eye on
the now, and the other on the future.
Maintaining our ‘fish come first’
approach is essential, as healthy,
thriving fish are key to both our growth
and long-term sustainability.
Intentional Investments to Build
Confidence and Enable Growth
We are making intentional investments in the right things,
for the right reasons, in the right order, and at the right
time. Executing this well will drive us towards success.
FY25 has been a year of solid progress, with strong
economic results showing that we’re continuing in
the right direction. Entering this growth phase with a
healthy balance sheet gives us the ability to invest in
our growth plans.
We continue to balance fiscal prudence with intentional
investments designed to deliver meaningful results. In
FY25, we focused our investments on strengthening
existing operations while strategically allocating
resources to support growth. These investments included
expenditures for the Blue Endeavour service vessel and
pilot farm pens, ongoing research and development, and
new processing equipment.
Importantly, our investments this year went beyond
financial. We dedicated time and energy to building
strong relationships with tangata whenua, shareholders,
government, industry, science institutes, the Moananui
blue economy cluster, and other key stakeholders.
Relationship building is a core focus of our new strategy.
By understanding the diverse perspectives surrounding
6New Zealand King SalmonAnnual Report FY25 — OverviewContents
Managing Risk to Support Growth
and Reduce Volatility
Ensuring we have suitable risk mitigations in place to
support our growth plans and reduce volatility has been
a core company focus.
Effectively managing risk is essential for sustained
success and long-term value. By staying focused on risk
management, we can make better decisions, use resources
wisely, and pursue sustainable growth that aligns with
our goals while building resilience for the future.
We apply this risk management approach across
all areas of the business, including:
• Piloting Blue Endeavour open ocean farming and
Recirculating Aquaculture Systems (RAS).
• Diversifying sales into alternative markets.
• Hydrological mapping at freshwater sites to assess
climate-related risks such as floods and droughts.
• Investing in breeding research to improve salmon
resilience in warmer waters.
It is important to remember that there is often a lag
between investments made and the delivery of results
or returns. The biological rhythms of our fish and nature
dictate our investment cycles. Sometimes, you won’t see
the outcomes of our investments in risk mitigations, for
example, investments in flood protection, where essentially,
‘no news is good news’. Identifying potential volatility and
reducing the opportunity for adverse events keeps the
pathway ahead as smooth as possible for our company.
In this context, dividends will remain on hold as we
strengthen our capital base and funding capacity to bring
Blue Endeavour to reality.
Supportive Government Policy and
Harnessing Collaborative Opportunities
As an industry leader in the rearing of King salmon, we take
our responsibility seriously, including identifying strategic
opportunities to collaborate, partner and create value
for both our company, and NZ Inc. The most significant
example of this is our Future Farming partnership.
By staying focused on risk
management, we can make better
decisions, use resources wisely, and
pursue sustainable growth that
aligns with our goals while building
resilience for the future.
7New Zealand King SalmonAnnual Report FY25 — OverviewContents
On 3 March 2025, we announced a significant, multi-year
partnership with the New Zealand Government under the
Sustainable Food and Fibre Futures (SFF Futures) fund.
The programme is expected to cost ~$29.3 million in
total, with an investment by the government of up to
$11.7 million.
Across its five-year duration, the ‘Future Farming’
programme will pilot the technologies that will provide
the ‘blueprint’ for substantive and sustainable salmon
farming growth in NZ, especially within new open
ocean environments.
This programme encompasses three workstreams that
will prove the technologies necessary for any significant
industry growth:
• Blue Endeavour Pilot — in relation to open ocean
aquaculture (OOA),
• Recirculating Aquaculture Systems (RAS) Pilot — in
relation to freshwater hatchery technologies, and
• Novel Breeding Strategies Leveraging Genomics — to
improve fish resilience and breeding accuracy.
The successful deployment of these technologies in a pilot
but commercially relevant scale will demonstrate their
utility to the wider NZ salmon farming sector. It will provide
the business confidence for other companies to deploy
similar technologies to unlock significant growth, while also
supporting the long-term viability of the industry against
climate-change exacerbated challenges.
NZKS acknowledges the co-funding of this project by
the Ministry for Primary Industries’ Sustainable Food and
Fibre Futures fund. This project is one of the highest-value
investments made by SFF Futures since the fund was
established in 2018 and demonstrates both NZKS’ and
the wider sector’s strategic importance for New Zealand.
Crown funding will assist NZKS’ ability to share what is
learned from this project across the industry, thereby
providing the ‘blueprint’ for industry-wide growth.
Our team has invested significantly in this application
process over the past twelve months, and it is an example
of our collaborative approach bearing fruit for our
company. We would like to thank our project management
team and the New Zealand Government for their hard work
in achieving this great outcome.
Image: Hon Todd McClay announcing the launch
of the Future Farming partnership at Tentburn.
Future Farming — a NZKS and
New Zealand Government Partnership
8New Zealand King SalmonAnnual Report FY25 — OverviewContents
Future Farming
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Blue Endeavour Pilot
Outcomes
Pilot open ocean pen technology—
two pens installed to test system and
methodologies, measuring fish health
and production outcomes.
Novel Breeding Strategies
Testing new genomic selection
technologies—improves breeding accuracy,
accurate selection of desirable resilience
traits e.g. thermotolerance.
RAS Pilot
Pilot land-based hatchery technology—testing
a modular recirculating aquaculture system.
Production metrics including fish performance
and health. Operational metrics including water
quality, biofilters and operational efficiencies.
Blue Endeavour Scaled
~10,000MT, generating ~$350M
additional export revenue, creates
‘blueprint’ for industry.
NZ Salmon Farming Sector Expands
Proves transferable technologies for wider
industry adoption, sector achieves scale,
and builds resilience.
NZ Salmon Global Export Expansion
NZ expands position as global leader in
King salmon, sector production increases
significantly.
9New Zealand King SalmonAnnual Report FY25 — OverviewContents
The Resource Management (Extended
Duration of Coastal Permits for Marine Farms)
Amendment Bill 2024
Another critical milestone this financial year was the
passing of the Resource Management (Extended Duration
of Coastal Permits for Marine Farms) Amendment Bill
2024 in August. This landmark outcome has ensured
our continued tenure at our inshore farms and is an
overwhelmingly positive vote of confidence for the
aquaculture sector focused on building a healthier future
for New Zealand. Critically, it gives us the certainty of
tenure to continue farming our current inshore farms,
which will play a crucial role in our entry into offshore
environments such as Blue Endeavour.
Outlook
We hold an overall optimistic outlook for the coming
financial year. Challenges resulting from some summer
related pressures did see us reduce our harvest volumes
and profitability forecast for FY26, however we maintain
laser focus on continuing to reduce risks given the
inherent uncertainties of farming a biological asset.
The government has a double-export growth agenda to
help drive the economic recovery. The aquaculture sector
is a critical primary industry, and we are well-positioned
to support and lead this goal.
Consumer demand for King salmon remains high, and
New Zealand holds a global market leadership position
for this high-value species. We are actively planning sales
and market development to ensure the increased supply
from Blue Endeavour meets growing demand. We see
major growth opportunities and untapped potential in
key markets, such as Australia and China. To support
this, we are laying the groundwork to secure demand for
the staged production increase.
Consumer demand for King salmon
remains high, and New Zealand holds
a global market leadership position
for this high-value species.
10New Zealand King SalmonAnnual Report FY25 — OverviewContents
Summary
This time last year, we received the final permissions
to farm at Blue Endeavour. A year later, we are
pleased to share with you the significant progress
and planning we have undertaken to turn the
polygons on the map into reality.
In addition, we have the privilege of working in
partnership with the New Zealand Government
on this significant undertaking through the Future
Farming project.
This has been another solid year for NZKS as we
continue to build the foundations required to execute
our growth plans. We extend our heartfelt thanks to
all those who have contributed to another successful
year — our dedicated team, our shareholders, our
customers, and our communities. Together, we can
drive progress towards a healthier tomorrow.
Carl Carrington
Chief Executive Officer
Mark Dewdney
Chair
Ōtānerau, Queen Charlotte Sound/Tōtaranui
11New Zealand King SalmonAnnual Report FY25 — OverviewContents
4 Star BAP certified
$13.4
million
Net Profit
After Tax
Our products
are enjoyed in
14
countries
worldwide
$29.7
million
Pro-forma
EBITDA
1st
Climate Related
Disclosures Report
published
~320kg
Of waste
collected over 33
beach clean ups
~600kg
Salmon gifted
under our
community
sponsorship
programme
50+
Community
events and
engagements
6,778 MT
Harvested
68%
Export sales
32%
Domestic sales
~200,000
Fish for Blue
Endeavour growing
at Tentburn hatchery
Salmon Bites
Gender pay gap
is below the NZ
median of
8.2%
23.4kg
The largest
Ōra King TYEE
to date
12New Zealand King SalmonAnnual Report FY25 — OverviewContents
44
%
North
America
New Zealand
32
%
11
%
Australia
5
%
Asia
(excl. China / Japan)
3
%
2
%
Japan
3
%
Europe
China
Our Global
Sales Footprint
13New Zealand King SalmonAnnual Report FY25 — OverviewContents
Performance Highlights
GAAPPro-Forma
NZ$000sFY25FY24% chg. FY25FY24% chg.
Volume Sold (t)6,582 5,899 12%6,582 5,899 12%
Revenue210,993 187,106 13%210,993 187,106 13%
Gross Profit
2
45,365 59,052 (23%)59,874 49,591 21%
Gross Profit %
2
22%32%28%27%
EBITDA26,384 46,990 (44%)29,729 24,475 21%
EBITDA %13%25%14%13%
EBIT18,247 39,405 (54%)21,592 16,890 28%
NPAT13,359 28,452 (53%)15,767 12,241 29%
1
Refer to Glossary for the NZKS definition of Pro-Forma Operating EBITDA.
2
FY24 GAAP Gross Profit has been restated due to a change in presentation in the financial statements.
Depreciation associated with growing and processing salmon is now included in cost of goods sold.
Group Financial Performance
The FY25 result (on a Pro-Forma Operating EBITDA
1
result) represents NZKS’ best financial performance since
listing. However, in achieving this result the Board and
Management have identified both the opportunity and the
need to continue to improve and produce consistent results.
The Company remains focused on how it can continue to
reduce risks, given the inherent uncertainties of farming a
biological asset in the sea.
Additional biomass combined with a continued focus on
product and market optimisation delivered a record $211m
in revenue. The increase in revenue helped offset increases
in both direct costs (the cost of harvesting and processing
fish) and corporate costs (investments in the corporate
office capability and an increase in compliance costs).
The continued improvement in profitability and the
retention of profits provides a strong balance sheet for
future growth initiatives. As at 31 January 2025, NZKS has
~$50m of net cash on hand.
GAAP results were adversely impacted by a decrease in fair
value of $7.7m, mainly driven by biological assets (FY24 fair
value increase of $15.8m) and a smaller contribution from
the continued unwind of early close out of FX contracts
$4.3m (FY24 $6.7m) which occurred in FY21 and FY22.
14New Zealand King SalmonAnnual Report FY25 — OverviewContents
Performance Highlights
Fish Performance
Fish performance remains the core focus for the business.
FY25 completed the second full year of the adapted farming
strategy, which involves having the majority of biomass in
the cooler Tory Channel / Kura Te Au region over the warmer
months, before towing to the Queen Charlotte Sound /
Tōtaranui. As noted during half year, the positive biological
performance shown in the first summer period, including lower
summer mortality, was repeated over the 2023-24 summer.
FY25 harvest volumes were just under 6,800MT which is within
the range of expected harvest volumes. Pleasingly, FY25 also
saw an overall increase in average harvest size.
Unfortunately, higher than expected sea farm mortality,
coupled with lower than anticipated growth rates over the most
recent summer period (2024-25) will result in a reduced harvest
for FY26. Although the mortality is well below the FY22/FY23,
being the 2021-22 summer period, this highlights the need to be
constantly working to improve fish performance outcomes.
Feed prices for the full year were slightly above FY24 level.
Our most recent feed prices (repriced quarterly) have seen
a decrease heading into FY26. Our trial pen facility was
completed in December 2024 with the first feed trial underway
from Jan 2025. This facility is crucial to our ongoing diet
development work with our feed partners.
-75
-50
-25
0
25
NZ$m
FY21FY22FY24FY23FY25
7.1
73.2
1.928.513.4
NZ$m
-10
0
10
20
30
FY21FY22FY24FY23FY25
10.9
2.7
8.724.529.7
GAAP NPAT
Pro-Forma Operating EBITDA
Biological Performance
FY25FY24% chg.
Harvest Volume (MT)6,7786,2389%
Average Harvest Weight (Kg)3.893.2420%
Feed Conversion Ratio (FCR)1.781.741%
Closing Livestock Biomass4,8795,379(9%)
Feed Cost ($ / Kg of feed)3.413.381%
15
New Zealand King SalmonAnnual Report FY25 — OverviewContents
Healthy
Economies
16New Zealand King SalmonAnnual Report FY25 — Healthy EconomiesContents
The Role of Aquaculture in
Economic Growth
New Zealand’s aquaculture sector is
at a pivotal moment, with a goal to
quadruple its value to $3 billion annually
within the next decade, as outlined in the
New Zealand Aquaculture Development
Plan 2025–2030.
Healthy Economies
Our multi-year partnership with the
New Zealand Government through
the Future Farming project is a critical
first step in achieving this — proving the
technologies and practices that will
shape the future of open ocean farming
and unlock the full potential of
New Zealand’s King salmon industry.
We are proud to be a significant contributor to both
regional and national economies, with future plans that
will further grow this impact. Our Blue Endeavour project,
once fully developed, could add ~$350 million in annual
export revenue, which aligns to the central Government’s
focus on an export-led economic recovery.
Ngāmahau, Tory Channel/Kura Te Au
17
New Zealand King SalmonAnnual Report FY25 — Healthy EconomiesContents
Leading the Future of Open Ocean
King Salmon Farming
Developing New Zealand’s first open ocean King
salmon farm is a complex undertaking involving
multiple interconnected projects. Each critical
aspect underscores the importance of a structured,
step-by-step approach—carried out with precision
and rigour—to ensure long-term success.
Stable Core Business
The foundation of all future initiatives
lies in maintaining a stable core
business. This provides the cash flow
required to support and sequence the
necessary investments.
Pilot Recirculating
Aquaculture Systems (RAS)
Land-based infrastructure is vital
for farming the ocean, particularly
increasing freshwater capacity for
smolt. We will implement a modular,
pilot-scale RAS to learn about this
technology before scaling up to meet
this critical need.
Future Breeding Programmes
Supporting Infrastructure
Success in primary production depends on
robust breeding programmes. Continued
investment in breeding, including the
development of genomics for resilience
will underpin our long-term viability.
Essential infrastructure, including
a specialised service vessel and
advanced net cleaning equipment,
will be integral to operations.
Pilot Open Ocean Farm
A cautious, phased entry into
open ocean farming, minimising
risk and ensuring a thorough
and deliberate approach to
scaling operations.
Well-Boat
Scaling beyond the pilot phase
will require a well-boat to
support the transportation of
live fish in Blue Endeavour’s
large-scale operations.
Factory Capacity Expansion
As our current factory approaches its
end-of-life and production capacity limits,
understanding the costs and timelines for a
significant upgrade is crucial.
Bold Endeavours
18New Zealand King SalmonAnnual Report FY25 — Healthy EconomiesContents
In the second harvest cycle, fish numbers will increase
slightly while keeping operations at a pilot scale. This phased
approach will help us address the unique challenges of
open ocean farming, validate critical components such as
infrastructure, operating procedures, fish welfare, and refine
processes as needed. By taking time to adapt and learn, we
will be well-positioned to scale-up with confidence.
Key milestones:
Preparations for the pilot progressed significantly in FY25.
Infrastructure is under construction, baseline environmental
studies are underway, and the first cohort of fish is growing
at Tentburn. Once operational, key activities — such as
feeding, environmental monitoring, fish health checks,
and pen and net maintenance — will be managed from a
custom-built service vessel.
A Pilot Approach to Open Ocean Farming
As shown by our nine-year journey to establish Blue
Endeavour (BE), aquaculture is a sector that rewards
patience, caution, and precision. With this in mind, we
are launching a pilot-scale open ocean farm over two
harvest cycles. This phased approach will ensure careful
implementation, minimise risk, and build confidence
among stakeholders.
Ordering and construction of key infrastructure (pens, moorings, vessel)
FY25FY26FY27FY28
Baseline monitoring
First ‘BE fish’ growing at Tentburn hatchery
Installation
of mooring
grid at
BE site
First pilot fish towed to BE site
and grown out
First pilot
harvest
First pilot fish to nursery site and
grown out
Second ‘BE fish’ growing at Tentburn
hatchery
Second pilot fish to nursery site and
grown out
Second pilot fish towed to BE site and
grown out
Second pilot
harvest
19New Zealand King SalmonAnnual Report FY25 — Healthy EconomiesContents
Our sea farm sites in Pelorus Sound / Te Hoiere are
essential to Blue Endeavour operations, functioning
as vital nursery farms and key harvest locations. The
Extended Duration of Coastal Permits for Marine
Farms Bill, which came into effect in the second
half of FY25, guarantees certainty of tenure at
these sites until at least 2044. This provides a stable
foundation for future growth and underpins the
long-term success of our operations.
Clay Point – 2050
Blue Endeavour 2 (North) – 2057
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Waitohi/Picton
Te Moana-o-Raukawa
/ Cook Strait
Waihinau – 2044
Forsyth Bay – 2044
Waitātā – 2050
Kopāua – 2050
Blue Endeavour 1 (South) – 2057
Crail Bay – 2044
Ruakākā – 2044
Ōtānerau – 2044
Ngāmahau – 2050
Te Pangu – 2050
Breeding Facility
Processing
Hatchery
A Stable Foundation
for Growth
20New Zealand King SalmonAnnual Report FY25 — Healthy EconomiesContents
Infrastructure Investment for Future Growth
As part of our commitment to supporting key operations
and future growth, we have invested in a new transport
and grading facility at Tentburn. Fully commissioned
in FY25, this facility plays a critical role in our freshwater
operations by ensuring efficient fish assessment and
transfer. It is an essential upgrade that will support
increased volumes in the years ahead.
Building Strong Regional Economies
We are proud that our operations directly support over 440
team members and deliver significant economic benefits
through local employment, community investment, and
partnerships with local suppliers and businesses. The money
invested into, or spent with NZKS stimulates regional
economies, creating direct and indirect employment and
supporting businesses across a range of industries.
We are committed to fostering thriving, resilient
regional communities through:
• Job Creation: Providing stable, meaningful careers with
opportunities for training, development, and upskilling.
• Local Suppliers: Prioritising local suppliers and
contractors directs investment into the regions where
we operate, supporting industries such as logistics,
engineering, and other services.
• Community Contributions: Sponsorships, scholarships,
and partnerships that strengthen education, well-being,
and environmental initiatives, ensuring our success
benefits the communities we call home.
By investing in people, partnerships, and local businesses,
we continue to drive sustainable economic growth that
supports current and future generations.
Investing in a Thriving Future
Looking ahead, we are committed to sustainable growth
and shared prosperity. FY25 was a milestone year, laying
the foundations for future success. By prioritising growth,
operational excellence, and environmental responsibility,
we create value for shareholders while supporting strong
regional and national economies.
As part of our commitment to supporting
key operations and future growth, we
have invested in a new transport and
grading facility at Tentburn.
21New Zealand King SalmonAnnual Report FY25 — Healthy EconomiesContents
Healthy
Environments
Te Pangu, Tory Channel/Kura Te Au
22
New Zealand King SalmonAnnual Report FY25 — Healthy EnvironmentsContents
Fish Health and Welfare
The health of our fish is directly tied to the
ecosystems we operate within, making the
natural environment vital to our success.
Operating in New Zealand’s unique
marine and freshwater environments is
both a privilege and a responsibility we
take seriously. Our approach is guided by
environmental, social, and governance
(ESG) principles.
Whilst we recognise that farming practices
can impact on the environment, we
maintain a focus on minimising this. We
undergo independent scientific monitoring
across all our sites, continually monitor
against relevant metrics, and actively
engage in the consent processes. In addition
to this, we maintain Best Aquaculture
Practice (BAP) certification across all our
Healthy Environments
aquaculture sites which encompasses an
annual independent, in-person audit.
Recognising our Responsible
Practices
Beyond our four-star BAP certification
and consent processes, we work to
maintain certifications, partnerships, and
recommendations, for example, engaging
with the New Zealand farmed King
salmon industry on important industry
recommendations, such as the Monterey
Bay Green ‘Best Choice’ rating.
We depend on a healthy environment for our fish to
thrive. Minimising our environmental footprint and
working with the natural world is core to our business.
Licence No.100259
Clay Point, Tory Channel/Kura Te Au
23
New Zealand King SalmonAnnual Report FY25 — Healthy EnvironmentsContents
Biological Performance
In FY25, by strategically farming most of our biomass
in the cooler waters of the Tory Channel / Kura Te Au
during the warmer months, our biological performance
was as anticipated and kept Q4 mortality levels within
expected ranges.
FY21FY22FY23FY24FY25
TOTAL MORTALITY BIOMASS
MT
Total Mortality Biomass
24New Zealand King SalmonAnnual Report FY25 — Healthy EnvironmentsContents
Ongoing Investment in Research
and Development (R&D)
We are dedicated to advancing fish health, welfare, and
production outcomes through targeted R&D initiatives:
• Seafarm Trial Pens: In FY25, we invested in a series
of 12 trial pens at Ruakākā, enabling collaboration
with feed and science partners to conduct feed and
health trials in our farming environment. This facility
will support more targeted, scientifically rigorous
trials aimed at improving fish health and optimising
performance outcomes.
• Thermotolerance and Genomics
*
Development: Now
in its third year, our collaboration with the Cawthron
Institute has made promising progress in identifying
thermotolerant salmon families. This genetic selection
approach addresses the climate-related risk of
warming ocean waters. Parallel seafarm trials will test
the real-world effectiveness of lab results and identify
additional resilience and performance traits. The first
thermotolerant fish are expected to be stocked at sea
in mid-FY28.
• Smoltification: Smoltification is the process where
young salmon naturally adapt to transition from
freshwater to seawater. A key fish health priority
is reducing the impact of young salmon failing to
adapt to seawater, which we refer to as early runting.
Recent trials have shown promising solutions using
RAS technology, which we plan to commence work
on the pilot in FY26 and FY27, along with more
immediate improvements through diet changes.
Through these focused R&D efforts, we aim to address
current challenges, enhance fish health, and unlock
long-term growth opportunities.
*
Genomics is the study and mapping of
genomes (the full set of genetic instructions
for an organism) but does not involve the
manipulation of genes or genomes. Genomic
selection in our breeding programme will allow
much more accurate selection of individual
broodfish which have desirable traits. This
will improve the pace of genetic gains in our
stock — with an emphasis on resilience traits
such as thermotolerance.
Image: Aerial view of seafarm trial pens.
Ruakākā, Queen Charlotte Sound/Tōtaranui
25
New Zealand King SalmonAnnual Report FY25 — Healthy EnvironmentsContents
Climate
We were proud to release our first Climate-Related
Disclosures for the year ended 31 January 2024, on 28
May 2024. This is a positive step in our sustainability
journey, providing a framework to guide and measure
decision-making. Our ability to understand and adapt
to climate-related risks and opportunities is crucial
to future growth — a priority that management
acknowledges and remains focused on.
Blue Endeavour marks a significant step in expanding
production capacity, and we recognise that this growth
may impact our overall carbon footprint. However, we
remain committed to growing responsibly.
In FY25, we worked with third parties to explore
opportunities for reducing Scope 1 and 2 emissions.
Although immediate opportunities are limited, emission
reduction strategies will continue to factor into business
decision-making. We have also become a partner of The
Aotearoa Circle and are part of the group developing
the Seafood Nature, Climate and Te Ao Māori Scenarios.
This work will continue to support our Climate-Related
Disclosure reporting maturity.
We remain proud to produce healthy, nutritious, and
high-quality protein and firmly believe that farmed
salmon plays a key role in building sustainable and
resilient food systems.
Our FY25 Climate-Related Disclosures will be available on
the company website, no later than 31 May 2025.
Building Climate and Freshwater Resilience
We are addressing climate risks to safeguard the
sustainability of our freshwater operations at Tentburn
and Tākaka. In FY25, comprehensive hydrological
assessments enhanced our understanding of flood and
drought risks and led to the development of tailored
resilience projects:
• Hydrological Mapping: Data from assessments will
inform projects to mitigate flood and drought impacts.
• RAS Technologies: Pilot projects exploring advanced
freshwater systems to reduce water usage and build
resilience, with a potential rollout in FY26–FY27.
These initiatives support operational resilience and
sustainable growth in response to climate challenges.
Read our Climate-Related
Disclosure Report
26New Zealand King SalmonAnnual Report FY25 — Healthy EnvironmentsContents
and working with our partners in this space. Building
on this success, we are exploring new, innovative
applications for RRMs, with key initiatives including:
• High-Value Protein Recovery: Recent investigations
identified an opportunity to repurpose salmon kidney
line protein into valuable raw materials. A new process
now captures and uses this protein as a key ingredient
in nutrient-rich fish meal for non-salmon applications.
This initiative maximises the RRM nutritional value,
reduces organic waste, and moves us closer to our
goal of fully utilising the whole fish.
• High-Value Product Development: In collaboration
with external experts such as Callaghan Innovation
and Auckland University of Technology (AUT), we
are researching innovative ways to extract premium
products from our RRMs. Insights from these efforts,
expected in early FY26, will inform future factory
upgrades and growth strategies.
In FY25, we completed New Zealand’s
first in-house aquaculture finfish
ensilage plant in Picton.
Striving Toward Whole Fish Utilisation
We continuously work to maximise the value of every
part of our salmon by unlocking the full potential of
remaining raw materials (RRMs). Each year, we make
steady progress through dedicated research and
development. Looking ahead, we are confident in even
greater opportunities for innovation and growth.
Turning Organic Waste into
Renewable Resources
In FY25, we completed New Zealand’s first in-house
aquaculture finfish ensilage plant in Picton. This allows
us to transform by-products into feedstock for biogas
and organic fertiliser while diverting organic waste
from landfill.
The commissioning of this facility is the result of a
four-year project and a significant step forward in our
responsible management of resources. In FY26, we will
focus on boosting efficiency, fine-tuning the technology,
27New Zealand King SalmonAnnual Report FY25 — Healthy EnvironmentsContents
Fostering a Circular Economy Culture
Driving circularity at NZKS extends beyond infrastructure
to encompass internal capabilities and team ownership.
Initiatives such as the Go Green Fund and participation
in the XLabs Future of Food and Beverages programme
empower team members to actively contribute to
responsible operating procedures.
• Go Green Fund: This internal programme empowers
team members to share ideas for a greener future,
with support from Office Max to fund these initiatives
and projects. In FY25 the fund has supported initiatives
such as the below XLab participation and removing
single use paper towels from non-food safe buildings.
• XLabs Participation: In FY25, the team conducted a
critical systems mapping exercise across our processing
operations. Key findings highlighted the potential
to transform kidney line protein into valuable raw
materials, serving as the catalyst for the high-value
protein recovery project. It also led to new strategies for
improving water management, reducing environmental
impact, and enhancing operational resilience.
Wildfire Risk Mitigation at
Te Waikoropupū Springs
Te Waikoropupū Springs are a sacred taonga for mana
whenua ki Mohua/Golden Bay, and the nation. The Springs
and surrounding bush area have been registered as a wāhi
tapu site with Heritage New Zealand Pouhere Taonga, and
have been awarded a Water Conservation Order, the highest
protection order available from the Environmental Court.
However, the Springs draw significant visitors, which drastically
increases the risk of unconstrained fires when coupled with the
highly flammable vegetation surrounding the roadside.
The project aims to remove highly flammable species along
the road frontage leading to the Springs and replace them
with low-flammability options. Additional initiatives include
community education, signage, and an electronic fire
detection system.
Our Tākaka hatchery, where our fish start their lives, is situated
downstream of the Springs. We are highly dependent on the
health and vitality of this taonga and are proud to contribute
to mitigating the risks fire poses. NZKS is a partner alongside
Manawhenua ki Mohua, Fire and Emergency New Zealand
(FENZ), the Department of Conservation (DOC), and
Corrections NZ, and we are committed to sponsoring and
supporting the programme into the future.
Spotlight on Healthy Environments
We are highly dependent on the health
and vitality of this taonga Te Waikoropupū,
and are proud to contribute to mitigating
the risks fire poses.
28New Zealand King SalmonAnnual Report FY25 — Healthy EnvironmentsContents
Supporting Taonga Manu
We are proud to contribute to a range of native bird
recovery and rehabilitation efforts this year.
Tara Iti Conservation
In FY25, we continued supporting DOC and Auckland
Zoo in protecting the critically endangered Tara Iti.
By supplying live smolt under DOC’s supervision, we
provided emergency feed to help chicks develop and
transition to a live diet — an essential part of their early
growth. Our contribution supports the Tara Iti breeding
and release programme, which prepares chicks for life
in predator-free environments.
Hoiho Recovery with King Salmon Smoothies
We also supported the endangered Hoiho (yellow-eyed
penguin) through nutrient-rich King salmon smolt
provided to the Dunedin Wildlife Hospital. Rangers
collect newly hatched chicks and transfer them to the
hospital for intensive care. The omega-3-rich salmon
smolt is a key ingredient in fish smoothies that help
the chicks gain strength. Once they reach a healthy
weight, the chicks are reunited with their parents. Past
efforts using this approach have achieved a success
rate of over 90%.
Additional Bird Recovery Support
This year, we also provided smolt to the Kororā Little Blue
Penguin Trust for their urgent appeal and fundraised for
the Kārearea Falcon Trust at the Picton Maritime Festival.
While providing smolt can present some logistical
challenges, we remain proud and committed to supporting
critical bird rehabilitation initiatives when possible.
Images: Left, NZKS and Kārearea Falcon Trust fundraising at the
2025 Picton Maritime Festival. Above, Kororā/Little Blue penguin
recuperating with the help of our salmon.
29
New Zealand King SalmonAnnual Report FY25 — Healthy EnvironmentsContents
Healthy
Relationships
30New Zealand King SalmonAnnual Report FY25 — Healthy RelationshipsContents
Meaningful Relationships
Underpin Success
Our ability to succeed depends on
building strong, meaningful relationships.
By fostering meaningful connections
and partnerships, we are building shared
growth and resilience across our business
and communities as we work towards a
healthier tomorrow.
The following examples from FY25
demonstrate how our relationship-driven
approach translates into impactful
actions and tangible results.
Healthy Relationships
We have an ecosystem of important relationships which
we are dependent upon for success. We will continue to
strengthen and invest in our relationships to achieve a
healthy future.
Strengthening Relationships
with Tangata Whenua
In FY25, we prioritised
whakawhanaungatanga (building
connections) and strengthening our
relationships with tangata whenua. This
included one-on-one and collective hui,
along with site visits across our operations.
These meaningful engagements are fostering
deeper understanding and enriching us as an
organisation. Through these relationships, we
are discovering shared values, building our
cultural awareness and internal capabilities,
and exploring opportunities for future
collaboration.
31New Zealand King SalmonAnnual Report FY25 — Healthy RelationshipsContents
Partnering for Industry Advancement
Strong industry relationships drive progress for our
company, the aquaculture sector, and the broader blue
economy. Through key initiatives, we foster collaboration,
share expertise, and drive sector-wide innovation.
One key example is our growing partnership with the
New Zealand Government through the Future Farming
project — an essential initiative advancing open ocean
farming and supporting long-term industry growth. We
also engage with blue economy clusters, such as Moananui
in New Zealand and the Blue Economy CRC in Australia,
fostering cross-industry dialogue and innovation to
enhance aquaculture on both sides of the Tasman.
Locally, we maintain a strong partnership with Aquaculture
New Zealand (AQNZ) through active Board involvement,
conference sponsorship and participation, and talent
development initiatives. As part of this, we supported and
judged the 2024 Emerging Leaders Award, which recognises
and nurtures future industry leaders.
At the 2024 AQNZ conference in Nelson, we presented ‘Bold
Endeavours’, sharing insights into our open ocean farming
journey and outlining the opportunities, challenges, and key
steps ahead for the sector’s next major milestone.
Partnerships with science and research specialists play
a vital role in driving innovation in fish health, welfare,
resilience, and sustainable farming practices. These
collaborations support our strategic goals while benefiting
the wider aquaculture sector.
Our leadership in food safety plays a key role in
strengthening New Zealand’s seafood industry. Through
positions like Chair of the New Zealand Food Safety
Science and Research Centre (NZFSSRC) Industry Advisory
Group and representation on the Seafood Standards
Council, we collaborate closely with industry partners and
the Ministry for Primary Industries (MPI) to enhance food
safety systems.
At the 2024 AQNZ conference in
Nelson, we presented ‘Bold Endeavours’,
sharing insights into our open ocean
farming journey.
Image: CEO, Carl Carrington presenting at the 2024 AQNZ conference.
32
New Zealand King SalmonAnnual Report FY25 — Healthy RelationshipsContents
Engaging with our Customers
Building strong, trust-based relationships
with customers is vital to our continued
success in both domestic and export
markets. In FY25, we prioritised
strengthening connections and delivering
excellent service standards to boost
customer confidence and solidify our
reputation as a trusted supplier and partner.
Through tailored operational visits and
proactive dialogue, we strengthened
connections with local and global
customers, including distributors, importers,
and chefs. These engagements showcased
our commitment to transparency,
operational excellence, and shared goals.
Building the Future of
Aquaculture with NMIT
At NZKS, we are shaping the
future of aquaculture through our
longstanding relationship with Nelson
Marlborough Institute of Technology
(NMIT). Together, we equip the next
generation of aquaculture leaders with
practical skills, experience, and industry
connections to drive innovation and
sustainable growth.
Each year, we provide fertilised salmon
eggs (salmon-eyed eggs) for students
to study the full salmon life cycle, and
we supply whole fish for health checks
and dissection sessions, ensuring
hands-on learning in fish health and
anatomy. Through placements, field
trips, and research projects, students
gain real-world industry insights.
Beyond hands-on learning, we invest in
future leaders by offering scholarships
—supporting over 20 students with
nearly $150,000 in funding over the
past decade. We also play an active
role in shaping the aquaculture
curriculum through our contributions
to NMIT’s Aquaculture Industry Advisory
Committee, ensuring programmes align
with industry needs.
It’s a two-way exchange — NZKS team
members also attend NMIT each year
for advanced training in fish health and
necropsy techniques, strengthening
expertise on both sides.
This relationship extends beyond NZKS
and NMIT—it strengthens New Zealand’s
entire aquaculture sector, fostering
collaboration, innovation, and industry-
ready talent for long-term growth.
Investing in our Shareholders
Clear and consistent communication
with our shareholders is essential to
building trust and staying aligned
with our strategic goals. In FY25, we
continued to provide regular updates,
including Annual and Half-Year Results
presentations. We also participated
in the NZX Spotlight Series and
nationwide events hosted by the NZ
Shareholders Association.
By cultivating strong relationships and
fostering meaningful partnerships, we
continue to drive sustainable growth,
delivering value for our stakeholders
whilst collectively working towards a
healthier tomorrow for current and
future generations.
Spotlight on
Healthy Relationships
33New Zealand King SalmonAnnual Report FY25 — Healthy RelationshipsContents
Healthy
Communities
34New Zealand King SalmonAnnual Report FY25 — Healthy CommunitiesContents
Building a Strong, Engaged,
and Thriving Workforce
With over 440 team members, we are dedicated to
fostering a workplace that supports their health,
safety, and growth. This year, we took significant
steps to build a connected, inclusive, and engaging
culture — one that not only attracts and retains
exceptional talent but also ensures our people feel
valued and supported in their roles.
Healthy
Communities
We have been part of the fabric of
Te Tauihu for over 35 years. We value
our team members and communities
(in the region and beyond), who are
woven into our company.
Image: Team members at the 2025 Picton Maritime Festival.
35
New Zealand King SalmonAnnual Report FY25 — Healthy CommunitiesContents
Culture and Engagement
• New Values: We introduced our refreshed internal
values — Safety First; Better Every Day Together;
Provenance; and Responsibility — to guide our
internal culture and behaviours. A new recognition
framework, launching in FY26, will tie into these
values, ensuring team members are celebrated for
demonstrating our principles.
• Employee Engagement: Our FY25 engagement
survey delivered our best-ever score — 84% overall
engagement, with an impressive 85% response
rate. Notably, our aquaculture division saw an 11%
increase, and our processing division achieved 89%
engagement. Action plans are now in place to build
on this success.
• Collaboration Initiatives: To strengthen
connections across our business, we reinstated key
engagement activities, including:
— CEO and GM Lunches: Quarterly lunches where
the CEO meets with small groups of team
members to discuss the business, their challenges,
and ways we can improve as an organisation.
— Big Family Day Out: A highlight of FY25, giving
over 100 team members and their families an
immersive experience at our seafarms.
Clockwise from left: Team members enjoying the Big Family Day
Out, boat moored at the seafarms during the Big Family Day
Out, CEO and GM lunch with team members.
36
New Zealand King SalmonAnnual Report FY25 — Healthy CommunitiesContents
Health, Safety, and Wellness
Safety Focus: The health and safety of our
people remains a primary focus. Our 30+ active
Health and Safety representatives play a key role
in strengthening our safety strategy. This year,
we hosted two leadership health and safety
conferences and made critical advancements in risk
management, particularly in pedestrian and mobile
plant separation.
Period Equity Programme: To promote workplace
wellness, we expanded our free period products
programme to all processing, seafarm, and
hatchery sites, to ensure equal access.
Near-Miss Reporting and Lost Time Frequency
Injury Rate: Our FY25 lost time injury frequency
rate of 35 per 1 million hours worked, highlights the
need to enhance near-miss reporting and tackle
systemic challenges. We are dedicated to making
further improvements in safety and fostering a
healthier, safer work environment for everyone by
focusing on these areas.
Connecting
Our People
In March 2024, we
hosted the inaugural
New Zealand King Salmon
Big Family Day Out, bringing
together over 100 team members and their
families to foster collaboration, connection,
and engagement across the business.
Travelling together by bus from Nelson to Picton,
the group set off to visit our Te Pangu and Clay
Point seafarms in the Tory Channel. The day
included guided farm tours, stunning views,
and a shared lunch. For many, it was their first
opportunity to see our seafarms up close, making
the experience both informative and memorable.
The event received enthusiastic feedback,
deepening appreciation for our operations and
strengthening pride and connection among our
team members and their families.
The Big Family Day Out highlights our commitment
to valuing our people by fostering collaboration
and building meaningful connections across
different areas of the business.
Our 30+ active Health and Safety
representatives play a key role in
strengthening our safety strategy.
Spotlight on
Healthy Communities
37New Zealand King SalmonAnnual Report FY25 — Healthy CommunitiesContents
Training, Development,
and Succession Planning
• Upskilling Our People — We continue
to invest in our teams through:
— A Life Skills Programme: Over 30
team members completed ~740 hours
of personal development training,
covering communication, problem-
solving, and financial management.
— Open Learning Portal: Over 550
course enrolments this year, offering
team members access to quality
learning opportunities.
— Emerging Leader Programme:
Launching in FY26, this initiative
will train nine future leaders with
mentoring and core leadership skills.
• Performance Management: FY25 saw
the launch of our bespoke IT-based
performance management system,
streamlining goal-setting, feedback, and
development conversations.
Attracting and
Retaining Talent
• Long-Term Incentives: In FY25, the
Long-Term Incentive (LTI) scheme
was refreshed to ensure we retain
and motivate key senior managers.
• Scholarships: Supporting local
talent, with three NMIT scholarship
recipients this year including a
current team member.
By investing in our people and
prioritising their health, development,
and engagement, we continue to build
a strong, connected workforce while
strengthening our position as a local
employer of choice.
Over 30 team members
completed ~740
hours of personal
development training.
Honouring a Legend
The newly commissioned transport
and grading facility at Tentburn,
stands as a lasting tribute to Mike
Anderson, a much-loved and
respected member of the NZKS family
who sadly passed away in March 2024.
Mike’s 20+ year tenure began as
a hatchery technician at Kaituna,
Marlborough, in 1999, before he
relocated to Tentburn in 2004
following Kaituna’s closure. The
quintessential gentle giant, Mike’s
large stature was only matched by
the size of his heart and his generous,
kind nature. To commemorate Mike’s
incredible legacy and deep connection
to Tentburn, his teammates chose to
name the new facility in his honour.
Given its size and importance to our
operations, it felt only fitting that the
facility share his nickname.
The Big Mike building was officially
unveiled in December 2024 during a
moving ceremony attended by Mike’s
family, who joined the NZKS team
to celebrate his contributions and
enduring impact.
Mike’s legacy will forever live on
at NZKS — not just in the name
of the building but in the spirit of
camaraderie, kindness, and hard work
that he embodied every day.
Spotlight on
Healthy Communities
Image: The ‘Big Mike’ building at Tentburn.
38
New Zealand King SalmonAnnual Report FY25 — Healthy CommunitiesContents
Commitment to Our Local Community
We support our community through a variety of
initiatives that align with our values and geographic
footprint. Our contributions include financial support,
product donations, scholarships, event support and
participation, and fundraising activities. Our business
creates ripples of positive impact for multitudes of
other organisations and groups.
Community Sponsorship Programme
In FY25, we aligned our sponsorship programme with our
new strategic purpose ‘Towards a Healthier Tomorrow’,
setting out the following goals:
• Supporting the health and wellbeing of our regional
communities.
• Enhancing the health of the environment we depend on.
• Building healthy relationships with tangata whenua.
• Nurturing talent and skills for a future healthy workforce.
• Maintaining a healthy corporate presence and
participation in our communities.
Image: Rangatahi from Te Tauihu performing at the pōwhiri for
Ngā Kapa Haka Kura Tuarua a Motu, hosted in Whakatū. NZKS were
proud to sponsor the event in alignment with our sponsorship goals.
Photo credit: Erica Sinclair.
39
New Zealand King SalmonAnnual Report FY25 — Healthy CommunitiesContents
TĀKAKA
NELSON
HAVELOCK
BLENHEIM
PICTON
ANAKIWA
WAIKAWA
Sponsorship
Activities
Te Waikoropupū
Springs Wildfire Risk
Mitigation Project
Supporting wildfire risk
reduction near this
sacred taonga
Some examples of
initiatives we support:
Seafood Saturday
Sponsored and
participated in Nelson’s
seafood festival,
celebrating our world-
leading seafood sector
Women of Aquaculture Aotearoa
Supported the inaugural launch
event of Women of Aquaculture
Aotearoa (WOAA)
Havelock Mussel &
Seafood Festival
Platinum sponsors,
with fundraising for
the Te Hoiere Kura
Kaipupū Wildlife
Sanctuary
Rimu sponsors
Waikawa Boating Club
NZKS Winter Race Series
sponsorship
Queen
Charlotte College
Sponsorship and
support for the wetlab
aquaculture facility ,
and end of year
awards sponsorship
Picton
Maritime Festival
Sponsorship, with
fundraising for
Kārearea falcon
Marlborough
Chamber of
Commerce
Gold sponsors
Marlborough Girls College
End of year awards
sponsorship
Multicultural Nelson
Supported the Laos Language School
and Multicultural Nelson Festival
Big Brothers
Big Sisters
Cornerstone
sponsors
NMIT
Refreshed scholarship
programme, including three
scholarships valued at $10,000
Special Olympics
Nelson Basketball
Corporate sponsorship
Ngā Kapa Haka Kura
Tuarua a Motu 2024
Corporate sponsorship
to foster positive
community connectivity
through kapa haka
Nelson Tasman Hospice
Supported the Nelson
Airport Trees of
Remembrance initiative
40New Zealand King SalmonAnnual Report FY25 — Healthy CommunitiesContents
Kai
Sometimes, the best way we can show
support is by sharing our delicious salmon.
In FY25, we donated ~600kg of salmon to
various community causes, along with over
1,700kg of Omega Plus products to pet
charities across New Zealand.
Through this support, we aim to make a
meaningful impact and strengthen the
communities we are proud to be part of.
~600kg of salmon gifted
under our community
sponsorship programme.
41New Zealand King SalmonAnnual Report FY25 — Healthy CommunitiesContents
Healthy
Kai
42New Zealand King SalmonAnnual Report FY25 — Healthy KaiContents
As producers of the rare and highly sought-
after King salmon, we take pride in offering
one of the most nutritious and versatile
protein options available. Known for its
superior taste, rich texture, and exceptional
health benefits, our King salmon is a high-
value, low-carbon protein recognised for its
consistent quality and trusted reputation.
From Michelin-starred chefs to families
at home, customers choose our salmon
because they trust the care, expertise, and
integrity behind every step of its production.
Starting at our freshwater hatchery in
Tākaka and ending on plates worldwide,
every step of our process reflects our
commitment to producing an exceptional
product that supports health and inspires
confident cooking. With its unmatched
flavour and artisanal quality, our King
salmon elevates every dining experience.
Healthy Kai
We are proud to grow a product that is recognised as
a healthy, nutritious form of protein
1
. King salmon is a
good source of omega-3
2
and is packed full of nutrients
essential for overall health and wellbeing.
1
LCA of NZ farmed King Salmon.
2
Schedule 4 FSANZ - Food Standards Code.
Our Brands
We continue to strengthen our three
core consumer brands — Ōra King, Regal,
and Omega Plus — through innovation,
market expansion, and meaningful
partnerships that engage both
consumers and industry leaders.
In FY25, we aligned advertising and
promotional spend with sales growth
and margin targets, focusing on driving
awareness, enhancing product offerings,
and exploring new categories and
markets to set the stage for sustained
growth and global impact.
43New Zealand King SalmonAnnual Report FY25 — Healthy KaiContents
Ōra King remains the pinnacle of
culinary excellence, celebrated by
innovative chefs, restaurants, suppliers,
and distributors for its superior flavour,
exceptional texture, and status as a rare
and unique breed of King salmon.
The Ōra King ambassador network continues to play a
vital role in showcasing our unique product and brand
story, while strengthening credibility and generating
authentic content. This year, we welcomed several new
partners, including a renowned three-Michelin-starred
chef, further enhancing our global presence in key
markets and among target audiences.
The Chef’s Choice
Image: Ambassador Matt Lambert’s
Ōra King dish for Cuisine magazine.
44
New Zealand King SalmonAnnual Report FY25 — Healthy KaiContents
Celebrating Our Ōra King Ambassador Chefs:
• Nick Honeyman earned his first Michelin star in France,
solidifying his reputation as one of New Zealand’s leading
culinary exports.
• In Auckland, Paris Butter, led by Nick Honeyman and
Zennon Wijlens, was crowned New Zealand’s Best
Restaurant 2024.
*
• Long-standing ambassador Makoto Tokuyama was
once again awarded 3 hats at this year’s Cuisine Good
Food Awards, making his restaurant Cocoro the longest-
running 3-hatted restaurant in New Zealand.
• Norka Mella Munoz, Executive Chef of Wharekauhau
Country Estate, earned the title of Luxury Lodge Chef
of the Year at the 2024 Cuisine Good Food Awards and
received her first Cuisine hat.
• Rogelio Garcia, Executive Chef of the one-Michelin-star
restaurant Auro in California, launched his first cookbook,
Convivir, celebrating his Mexican heritage and the natural
abundance of Napa Valley.
*Ref: https://worldculinaryawards.com/award/new-zealand-best-restaurant /2024
Global Engagement - Connecting
Customers to the Source
Throughout FY25, we hosted several familiarisation
(famil) trips, inviting global distributors, chefs,
and partners to the heart of our operations. These
visits offered a unique opportunity to explore the
environments where our salmon is raised, gain
insight into our processes, and connect with the
dedicated people behind our product. Set against
the stunning natural landscapes of Marlborough
and Tākaka, guests experienced firsthand the care,
responsible practices, and craftsmanship that
define Ōra King salmon. These immersive visits
highlighted the deep connection between our
unique natural environments, thoughtful practices,
and the exceptional quality of our product, further
reinforcing Ōra King’s premium positioning as the
salmon of choice for culinary excellence.
Guests experienced firsthand
the care, responsible practices,
and craftsmanship that define
Ōra King salmon.
Image: Ōra King Ambassador, Makoto Tokuyama.
45
New Zealand King SalmonAnnual Report FY25 — Healthy KaiContents
Additional Highlights:
• Enhanced Traceability: We updated our traceability
experience on the Ōra King website making it easier
for chefs and customers to follow the journey of
their Ōra King salmon, strengthening trust and
transparency.
• Record TYEE Achievement: This year, we
harvested our largest Ōra King TYEE yet, weighing
an impressive 23.4kg. This achievement reflects
our ongoing commitment to innovation and
aquaculture leadership, as each year we continue to
surpass previous records and push the boundaries of
what is possible.
• Ambassador Events: We hosted several in-market
Ambassador events this year with the aim of
bringing together our global network of chefs
to encourage collaboration. Our Ambassador
programme continues to evolve with new and
exciting initiatives to foster the unmatched creativity
we see from our chefs worldwide.
Ōra King continues to reflect our unwavering
commitment to quality, collaboration, and innovation.
By fostering strong relationships with chefs and
partners worldwide, we ensure our product remains
the preferred choice for culinary leaders seeking the
finest salmon in the world.
Liwei Liao — Redefining Seafood with Ōra King
Liwei Liao, a prominent U.S. distributor and wholesaler, is an
influential advocate for Ōra King salmon and a pioneer in the
art of dry-aging fish.
Recently recognised as one of L.A.’s most influential people by
The Los Angeles Times L.A Influential, Liwei owns a sushi bar
celebrated for its premium hand rolls featuring Ōra King.
At the prestigious Las Vegas F1 Grand Prix, Liwei showcased his
speciality dry-aged Ōra King hand rolls, combining exceptional
quality with culinary innovation and a unique opportunity for
premium brand placement with a discerning VIP audience.
In February 2024, Liwei returned to Marlborough to visit
our seafarms once again. This trip offered him a renewed
perspective into the provenance, care, and innovation that
define Ōra King. With each visit, his connection to the brand
deepens, empowering him to share our story with authenticity
and impact in the competitive U.S. market.
“Ōra King is unmatched — since 2017, Ōra King has proven to
be the best salmon I have ever worked with. Its performance
in quality and reliability continues to surpass the test of time”
says Liwei.
Known for pushing culinary boundaries, he highlights Ōra
King’s firm texture, rich taste, and consistent quality as ideal
for both fresh and aged preparations.
Spotlight on Healthy Kai
46New Zealand King SalmonAnnual Report FY25 — Healthy KaiContents
Regal continues to lead the New
Zealand smoked salmon category as
the number one preferred brand for
preference and consideration.
*
In FY25, our focus has been on strengthening
brand equity and motivating consumers to choose
Regal salmon more often. We have achieved
this by developing innovative recipes for both
everyday meals and special occasions, partnering
with chefs, home cooks, and influencers to
share creative cooking ideas, launching seasonal
campaigns, and leveraging consumer panel
insights to refine our offerings and deepen
engagement.
*Ref — Tracksuit Data, February 2024 — January 2025
Inspiring
Everyday Dining
47New Zealand King SalmonAnnual Report FY25 — Healthy KaiContents
Key Highlights from FY25:
• Collaborations: Chef Al Brown returned as Regal’s
ambassador, inspiring Kiwis with his approachable
cooking style. Al’s passion for kai moana and New
Zealand’s oceans align perfectly with the Regal brand.
• Customer Engagement: We launched a new style of
digital campaign with Al Brown sharing creative recipe
videos, stories, and interactive content to inspire and
engage customers. These campaigns helped boost
our overall social media reach by 342% and content
interactions by 124% across Instagram and Facebook,
compared to the same time period in FY24.
*
• New Innovations: The newly launched Regal Epicurean
frozen range provides tasty and convenient, high-quality
options for everyday dining.
• NZ Retail Resilience: As more Kiwis embraced at-home
dining, demand for premium protein grew in FY25,
reflected in an increase in fresh salmon sales and a rise
in Regal ready-to-eat products.
*
’Meta Insights’ data for periods September 23–January 24
and September 24–January 25.
48New Zealand King SalmonAnnual Report FY25 — Healthy KaiContents
China — A Market of Opportunity
As an untapped market for NZKS, China presents
immense potential. This year, we focused on positioning
Regal as a premium offering by implementing targeted
strategies across multiple channels.
Regal launched in China with a strong emphasis on
storytelling and brand recognition, showcasing the
provenance and premium quality of our Marlborough King
salmon. Strategic partnerships, such as our collaboration
with importer China Resources Food Supply Chain Co.
Ltd (CRNFSC), played a key role in driving customer trial
and awareness through specialised retail and online
activities. In addition, Regal Chef Ambassador Caleb Zyon
introduced our premium salmon to Chinese chefs and
restaurants, through special events and menus. Having
worked in high end restaurants in New Zealand (including
Paris Butter, Auckland), Caleb’s passion for showcasing
New Zealand produce has been a perfect partnership for
Regal King salmon.
By investing in tailored marketing, customer education,
and in-market relationships, we are building a solid
foundation for long-term success in this dynamic market.
Image: Shanghai International Fisheries and Seafood Exhibition.
49
New Zealand King SalmonAnnual Report FY25 — Healthy KaiContents
Omega Plus remains focused
on its King salmon-based
products, rich in omega-3 and
essential nutrients for optimal
pet health.
This year, we concentrated on building
strong customer relationships and
enhancing product credibility. Our
transition to specialty retail has enabled
direct engagement with end-users,
including strategic placements in vet
clinics, strengthening trust in the brand.
Premium Pet
Nutrition
Key Highlights from FY25:
• Market Growth:
Omega Plus products are now
available in over 160 vet clinics across
New Zealand, building trust and
credibility among pet owners.
• Strategic Partnerships:
Our collaboration with
New Zealand Trade and Enterprise
(NZTE) at Pet Fair Asia has been
instrumental in creating visibility in
international markets.
• Customer Engagement:
Participation in our first vet
conference allowed one-on-one
interactions with this key segment.
Image: Top right, Omega Plus at Pet Fair Asia.
50New Zealand King SalmonAnnual Report FY25 — Healthy KaiContents
Global Reach and
Market Diversification
We remain dedicated to ensuring our salmon
is available in the local New Zealand market
while expanding our presence across key
international regions. Our strategy focuses
on market resilience, diversification, and
continuous price and product optimisation.
New Zealand: Retail growth driven by an increase in
ready-to-eat products and an increase in fresh salmon
sales, with the foodservice category consistent with
previous years.
North America: Strong foodservice demand for Ōra King
and Regal in retail.
Australia: Steady growth in both retail and foodservice
channel, driven by a strong preference for Ōra King and
expansion of Regal.
Europe & Japan: Consistent performance despite global
economic pressures.
China: Identified as a key market for growth, China plays a
pivotal role in diversifying our export strategy. Early progress
has been promising, laying a strong foundation for future
development.
18% Domestic
Retail
66%
International
Foodservice / Retail
16%
Domestic
Foodservice
Sales by
Channel
52% Whole Salmon
24% Fillets and Portions
6% Hot Smoked
14% Cold Smoked
3% Other
1% Petfood
Sales by
Product
($FY25)
11% Australia
44% North America
32% New Zealand
5% Other
2% China
3% Europe
3% Japan
Sales by
Country
($ FY25)
51New Zealand King SalmonAnnual Report FY25 — Healthy KaiContents
Leadership & Corporate
Governance
52New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Leadership &
Corporate Governance
Board of Directors
With overall responsibility for setting the Company’s
strategic direction and enhancing shareholder value, our
Board is committed to ensuring the Company meets best
practice governance principles and maintains the highest
ethical standards.
Mark Dewdney, Chiong Yong Tiong, Victoria Taylor, Jack Porus and Paul Munro
have all been identified as ordinarily resident in New Zealand.
Chiong Yong Tiong
Non-Executive Director
MCom, BCom
Victoria Taylor
Independent Non-Executive Director
BCom
Mark Dewdney
Independent Non-Executive Chair
BMS
Carol Chen
Non-Executive Director
BBA
Jack Porus
Non-Executive Director
BCom, LLB
Catriona Macleod
Independent Non-Executive Director
BSc, GIBio, MSc, PhD, GAICD
Paul Munro
Independent Non-Executive Director
BCom, FCA, CFInstD
53
New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Executive
The Executive is focused on ensuring the Company is
managed at the highest strategic level and they work to
realise the Company’s long-term corporate objectives.
The Executive are considered ‘senior managers’ as defined
by the Financial Markets Conduct Act 2013.
In addition to the Executive, the Senior Leadership team
(SLT) includes: Nikki Rackley (General Manager, People
& Culture), Denver McGregor (General Manager, Food
Safety & Quality), Cindy Steele (General Manager, Omega
Innovations), Monique Hatfull (Head of Relationships &
Communication), and General Manager, ICT (vacant).
Following an organisational design review in February
2025, there were changes to the Executive and Senior
Leadership team announced on 5 March 2025. The
following changes are effective from 7 April 2025. In the
Executive, the General Manager, Processing role has
been disestablished and replaced with General Manager,
Operations and Supply Chain. The roles of General
Manager, ICT; General Manager, Food Safety & Quality;
and General Manager, Omega Innovations, are no longer
on the Senior Leadership team.
Carl Carrington
Chief Executive Officer
Graeme Tregidga
Chief Commercial Officer
Richard Smith
General Manager, Processing
Ben Rodgers
Chief Financial Officer
Grant Lovell
General Manager, Aquaculture
Read our Board and
Executive Team Biographies
54New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Corporate Governance
Corporate Governance Statement
The Board of New Zealand King Salmon Investments Limited (the Company) together
with its subsidiaries (the Group) is committed to ensuring that the Company meets best
practice governance principles and maintains the highest ethical standards. This Corporate
Governance Statement provides an overview of the Company’s governance framework that
applied during the reporting period. It is structured to follow the revised NZX Corporate
Governance Code (NZX Code) effective 31 January 2025 and disclose practices relating to
the NZX Code’s recommendations.
The Board’s view is that during the reporting period, the Group has complied with the
corporate governance principles and recommendations set out in the revised NZX Code
apart from specific areas noted in this report. The Board believes our governance structures
and in particular, our remuneration approach meets the Company’s strategic objectives.
The Company’s key corporate governance documents referred to in this statement,
including charters and policies, can be found on the Company’s website:
www.kingsalmon.co.nz/governance
The Company’s Corporate Governance Code was reviewed, updated and approved
by the Board in February 2025. The extent to which the Company has followed the
recommendations in the NZX Code for the financial period to 31 January 2025 is detailed in
this Corporate Governance Statement, which is dated and was approved by the Board, on
27 March 2025.
1. Principle 1 — Ethical Standards
Directors should set high standards of ethical behaviour, model this behaviour and
hold Management accountable for these standards being followed throughout the
organisation.
Recommendation 1.1
The Board should document minimum standards of ethical behaviour to which the
issuer’s Directors and employees are expected to adhere (a Code of Ethics).
The Code of Ethics and where to find it should be communicated to the issuer’s
employees. Training should be provided regularly. The standards may be contained in a
single policy document or more than one policy.
The Code of Ethics should outline internal reporting procedures for any breach of ethics,
and describe the issuer’s expectations about behaviour, namely that every Director and
employee:
a. Acts honestly and with personal integrity in all actions;
b. Declares conflicts of interest and proactively advises of any potential conflicts;
c. Undertakes proper receipt and use of corporate information, assets and property;
d. In the case of Directors, gives proper attention to the matters before them;
e. Acts honestly and in the best interests of the issuer, as required by law, and takes
account of interests of shareholders and other stakeholders;
55New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
f. Adheres to any procedures around giving and receiving gifts (for example, where
gifts are given that are of value in order to influence employees and Directors, such
gifts should not be accepted);
g. Adheres to any procedures about whistle-blowing (for example, where actions of a
whistle-blower have complied with the issuer’s procedures, an issuer should protect
and support them, whether or not action is taken); and
h. Manages breaches of the code.
Code of Ethics
The Board sets a framework of ethical standards for the Group via its Code of Ethics,
which is contained in the Company’s Corporate Governance Code. These standards are
expected of all Directors and employees of the Group.
Every new Director, employee and contractor is provided with a copy of the Code of
Ethics and must confirm that they have read and understand the Code of Ethics. The
Code of Ethics is available on the Company’s website.
Training on the Code of Ethics to existing employees is required at least once every three
years or in the year after the Code of Ethics is materially amended. In FY25 there were
no material amendments, and the Company completed training on the Code of Ethics
for all existing employees.
The Code of Ethics is subject to regular review by the Board and was last reviewed in
February 2025.
The Company maintains an interests register, on which Directors and executives disclose
any interests such as other Directorships, shareholdings, or ownership, which may
potentially lead to conflicts or perceived conflicts of interest.
The Company has a formal whistle-blowing policy that is reviewed and circulated to all
employees every two years. The policy was reviewed and circulated in FY25. The next
review is scheduled for FY27. In FY25 there were no reported breaches of the Code of
Ethics. These are investigated by the People & Culture team with any substantiated claims,
reported through to the Board.
Recommendation 1.2
An issuer should have a financial product dealing policy which applies to employees
and Directors.
Share Trading by Company Directors and Employees
The Board of the Company has implemented a formal procedure to handle trading in the
Company’s quoted financial products. All Directors, officers, employees, contractors and
advisers of the Group must comply with the procedures set out in the Financial Products
Trading Policy and Guidelines as detailed in the Company’s Corporate Governance Code,
available on the Company’s website.
All trading by Directors and senior managers (as defined by the Financial Markets Conduct
Act 2013) is required to be reported to NZX and recorded in the Company’s securities
trading register. A blackout period is imposed for all Directors and employees between the
end of the half year and full year and until the end of the trading day on which the results
are released to NZX for that period. The policy provides that shares may not be traded at
any time by any individual holding material information. The full procedures are outlined in
the Financial Products Trading Policy and Guidelines, which is contained in the Company’s
Corporate Governance Code, available on the Company’s website.
56New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
2. Principle 2 — Board Composition and Performance
To ensure an effective Board, there should be a balance of independence, skills,
knowledge, experience and perspectives.
Recommendation 2.1
The Board of an issuer should operate under a written charter which sets out the roles
and responsibilities of the Board. The Board charter should clearly distinguish and
disclose the respective roles and responsibilities of the Board and Management.
Responsibilities of the Board
The Board is the ultimate decision-making body of the Company and appoints the
Chief Executive Officer (CEO) to whom it delegates the responsibility of managing
day-to-day operations.
The Board is responsible for setting the strategic direction of the Company, directing
the Company and enhancing shareholder value in accordance with good corporate
governance principles.
In addition to the duties and obligations of the Board under the Companies Act 1993
(the Act) and the NZX Listing Rules, the functions of the Board include:
• Appointing the Chair and the CEO.
• Providing counsel to, and reviewing the performance of, the CEO and Chief
Financial Officer (CFO).
• Reviewing and approving the strategic, business and financial plans prepared
by Management.
• Monitoring performance against the strategic, business and financial plans.
• Approving major investments and divestments.
• Ensuring ethical behaviour by the Company, Board, Management and employees.
• Assessing its own effectiveness in carrying out its functions.
The Board monitors these matters by receiving reports and plans from Management
and appropriate experts, and by maintaining an active programme of Company site
visits.
The Board uses committees to address certain issues that require detailed consideration
by members of the Board who have specialist knowledge and experience. The Board
retains ultimate responsibility for the functions of its committees and determines their
responsibilities.
The Board has a statutory obligation to maintain responsibility for certain matters.
It also deals directly with issues relating to the Company’s mission, appointments to the
Board, strategy, business and financial plans.
Details of the Board’s role, composition, responsibilities, operation, policies and
committees are provided in the Company’s Corporate Governance Code, available on
the company’s website.
57New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Recommendation 2.2
Every issuer should have a procedure for the nomination and appointment of
Directors to the Board.
Director Nomination and Appointment
The Board is responsible for appointing Directors. The People and Performance
Committee manages the appointment process for new Directors and the
re-election of existing Directors in order to make a recommendation to the Board.
The nomination and appointment procedure is set out in the Committee’s charter,
which is included in the Company’s Corporate Governance Code.
When considering an appointment, the Committee will undertake a thorough check
of the candidate and their background. Where the Board determines a person is an
appropriate candidate, shareholders are notified of that and are provided with all
material information that is relevant to the decision on whether to elect or re-elect
a Director.
The People and Performance Committee also has responsibility for reviewing
the composition of the Board to ensure that the Company has access to the
most appropriate balance of skills, qualifications, experience, perspectives and
background to effectively govern the Company. The Board completed a capability
review in FY25 which is depicted in the skills matrix opposite.
The average tenure of the current Directors is 5.1 years.
CapabilityKey elementCapability
Industry
Depth of senior experience in the seafood, fishing
and aquaculture industry
Governance
Scale listed company governance experience across
multiple entities
Large scale
infrastructure
Experience overseeing significant infrastructure
CapEx investment, build and project management
Financial expertise
Deep financial expertise — prior CFO and or / CA,
ability to Chair Audit, Finance and Risk Committee
CEO experience
Recent scale CEO experience — preferably in
aligned sector, demonstrated leadership across
commercial, operational and organisational
business priorities
Commercial
leadership
Commercial experience — scale project
management, delivery and implementation of
business strategies, M&A and consolidation
Consumer
manufacturing
Production, supply chain, logistics and automation
experience — preferably in food industry or wider
primary sector
Customer
connection
Experience leading international branding,
marketing, and go-to-market strategies
Stakeholder
connection
Connections to / understanding of key stakeholder
groups
Technology
Deep experience in driving digital innovation, tech
infrastructure, automation and distribution
People and culture
People and talent, understanding of ‘next gen’
workforce needs
High CapabilityModerate Capability
58New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Board of Directors
The Directors are listed on page 53 of this report. A more detailed profile is available on
the Company’s website, www.kingsalmon.co.nz/governance, including information on
the year of appointment, skills, experience and background of each Director.
The roles of the Board Chair; Audit, Finance and Risk Committee Chair; and CEO are not
held by the same person.
Ownership of the Company’s shares by Directors is encouraged rather than being a
requirement. Directors’ ownership interests are disclosed on page 91.
The Board does not have a tenure policy; however, it recognises that a regular
refreshment programme leads to the introduction of new perspectives, skills, attributes
and experience.
Director Tenure
Interests Register
The Board maintains an Interests Register. Any Director with an interest in a transaction
with the Company must immediately disclose to the Board the nature, monetary value
and extent of the interest. A Director who is interested in a transaction may attend and
participate at a Board meeting at which the transaction is discussed but may not be
counted in the quorum for that meeting or vote in respect of the transaction, unless
it is one of which Directors are expressly required by the Companies Act 1993 to sign a
certificate or it relates to the granting an indemnity.
Particulars of entries made in the Interests Register for the year to 31 January 2025 are
included in the Director Disclosures section on page 91.
Director period of appointment0-3 years3-9 years9 years +
Number of Directors331
Recommendation 2.3
An issuer should enter into written agreements with each newly appointed Director
establishing the terms of their appointment.
Letter of Appointment
All new Directors enter into a written agreement with the Company setting out the
terms of their appointment.
Recommendation 2.4 and 2.8
Every issuer should disclose information about each Director in its Annual Report or
on its website, including:
a. a profile of experience, length of service, independence, and ownership interests.
b. the Director’s attendance at Board meetings; and
c. the Board’s assessment of the Director’s independence, including a description
as to why the Board has determined the Director to be independent if one of
the factors listed in table 2.4
*
applies to the Director, along with a description
of the interest, relationship or position that triggers the application of the
relevant factor.
A majority of the Board should be independent Directors.
*
NZX Corporate Governance Code, Table 2.4, January 2025.
59New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Director Independence
On the advice of the People and Performance Committee, the Board determines
annually on a case-by-case basis, who, in its view, are independent Directors. The factors
listed in the NZX Code that may cause a Board to determine that a Director is not
independent are considered in addition to other factors for this purpose including, that
the Director:
• is currently, or was within the last three years, employed in an executive role by the
issuer, or any of its subsidiaries;
• is currently deriving, or was within the last 12 months derived a substantial portion of
his, her or their annual revenue from the issuer;
• is currently, or was within the last 12 months, in a senior role in a provider of material
professional services (other than an external auditor) to the issuer or any of its
subsidiaries;
• is currently, or was within the last three years, employed by the external auditor to
the issuer, or any of its subsidiaries;
• currently has, or did have within the last three years, a material business relationship
(e.g. as a supplier or customer) with the issuer or any of its subsidiaries;
• is a substantial product holder of the issuer, or a senior manager of, or person
otherwise associated with, a substantial product holder of the issuer;
• currently has, or was within the last three years had a material contractual
relationship with the issuer or any of its subsidiaries, other than as a Director;
• has close family ties or personal relationships (including close social or business
connections) with anyone in the categories listed above;
• has been a Director of the entity for a period of 12 years or more.
The Board will review any determination it makes on a Director’s independence on
becoming aware of any new information that may affect that Director’s independence.
For this purpose, Directors are required to ensure they immediately advise the Board
of any new or changed relationship that may affect their independence or result in a
conflict of interest.
As at 31 January 2025, the Board had seven Directors, four of whom were considered
independent. The Board confirms that it determined Mark Dewdney, Paul Munro,
Catriona Macleod and Victoria Taylor were independent Directors as at 31 January 2025.
The Board did not consider that any code factor was applicable to the independent
Directors in its assessment. Following the resignation of Paul Steere and appointment of
Paul Munro, there are no other immediate succession plans for the Board.
Recommendation 2.5
An issuer should have a written diversity policy which includes requirements for the
Board or a relevant Committee of the Board to set measurable objectives for achieving
diversity (which, at a minimum, should address gender diversity) and to assess annually
both the objectives and the entity’s progress in achieving them. The issuer should
disclose the policy or a summary of it.
Diversity Policy
The Company recognises the value in diversity and seeks to ensure that the Board and
workforce of the Group is as diverse as the community in which we operate. A formal
diversity policy was adopted by the Board and can be found in the Company’s Corporate
Governance Code, available on the Company’s website.
60New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
The Company does recruit, promote and compensate on the basis of merit–regardless
of gender, ethnicity, religion, age, nationality or union membership. The Company
does require that people in the workplace are treated with respect in accordance with
the Company’s Code of Conduct and Values in Action framework. The diversity policy
provides further examples of how the Group puts diversity and inclusion into practice.
The Board is committed to increasing the level of diversity at Board and Executive level
wherever possible. In FY25, the objective was set to have no less than 40% of females in
leadership positions, and no less than 40% males in leadership positions. The Company
notes this is a long-term target representation at Board and Senior Leadership level;
however, this target has not yet been achieved.
Responsibility for workplace diversity and the setting of measurable objectives is held by
the People and Performance Committee.
The gender composition of the Company is as follows:
As at 31 January 2025As at 31 January 2024
PositionFemaleMaleFemaleMale
Board3 (43%)4(57%)3 (43%)4(57%)
Senior Leadership Team3 (33%)6 (67%)3 (30%)7 (70%)
NZKS Organisation167 (37%)290 (63%)170 (37%)287 (63%)
In FY24, the Company started to record ethnic diversity of employees to better
understand its cultural makeup. As at 31 January 2025, the Company's employees were
from 35 different ethnicities.
Recommendation 2.6
Directors should undertake appropriate training to remain current on how to best
perform their duties as Directors of an issuer.
Director Training
The Board ensures that there is appropriate training available to all Directors to
enable them to remain current on how best to discharge their responsibilities and
keep up to date on changes and trends in areas relevant to their work.
In FY23 the Board engaged an external advisor to undertake a 360-degree feedback
review of the CEO and a peer and Management review of the Board, against best
practice benchmarks.
In FY25 the Board reengaged the same external advisor to assess what progress
had been made against the FY23 review. As a result of this, in FY25 the following
collective development areas were identified for the Board:
• Te Ao Māori
• Project Governance
• Demand & exposure to customers
• Technology
A further review will take place in FY27.
In addition, Directors are provided with industry information and receive copies of
appropriate company documents to enable them to perform their role. The Board
has allocated funding of $1,000 per annum for each Director to provide resources to
help develop and maintain skills and knowledge. This funding is separate from the
collective Board development initiatives.
Directors are expected to maintain their knowledge of the latest governance and
business practices in order to perform their duties.
The Board also ensures that new Directors are appropriately introduced to
Management and the business.
61New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Recommendation 2.7
The Board should have a procedure to regularly assess Director, Board and
Committee performance.
Board Performance Evaluation
The Board annually assesses its effectiveness in carrying out its functions and
responsibilities. The Chair of the Board leads the review and evaluation of the Board
as a whole, and of the Board Committees, against their charters. The Chair of the
Board also engages with individual Directors to evaluate and discuss performance
and professional development.
In FY25 the Board engaged an external advisor to undertake a 360-degree feedback
review of Board, against best practice benchmarks. This provided the opportunity for
a formal review of the Board as a whole and individual feedback for each Director.
The report was delivered in September 2024 (FY25).
Recommendation 2.9 and 2.10
An issuer should have an independent Chair of the Board. The Chair and the CEO
should be different people.
Chair Assessment
The Chair of the Board has been determined as independent and the role of Chair
and CEO are held by separate individuals to ensure that a conflict of interest does
not arise. The Chair of the Board is responsible for leading the Board, facilitating the
effective contributions of all Directors and promoting constructive and respectful
relations between Directors and between the Board and Management. The Chair is also
responsible for setting the Board’s agenda and ensuring that adequate time is available
for discussion of all agenda items, in particular strategic issues.
3. Principle 3 — Board Committees
The Board should use committees where this will enhance its effectiveness in key areas,
while still retaining Board responsibility.
Board Committees
The Board has established four committees:
• Audit, Finance and Risk Committee
• People and Performance Committee
• Health & Safety and Food Safety Committee
• Fish Farming Committee
Each Committee focuses on specific areas of governance and together they strengthen
the Board’s oversight of the Company. Committee membership is reviewed annually.
Each Committee has a written charter that is approved by the Board and sets out its
mandate. The charters are reviewed regularly with any proposed changes recommended
to the Board for approval. The charters can be found within the Company’s Corporate
Governance Code.
62New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
As part of the Board's review of the Company’s Corporate Governance Code in FY25,
changes were made to the Board committees effective from 1 February 2025 (FY26) to
move from four committees to three committees as follows:
• The Audit, Finance and Risk Committee will change to the Audit, Finance, Risk and
Project Development Committee, and Chiong Yong Tiong will replace Jack Porus as a
member of the Committee.
Members of the Audit, Finance, Risk and Project Development Committee from
1 February 2025:
— Paul Munro (Chair) — Independent, Non-Executive.
— Chiong Yong Tiong — nominated as a Director by Oregon Group Limited and thus not
Independent.
— Mark Dewdney — Independent, Non-Executive.
• The People and Performance Committee will merge with the Health & Safety and
Food Safety Committee to become the People, Performance and Safety Committee.
Members of the People, Performance and Safety Committee from 1 February 2025:
— Victoria Taylor (Chair) — Independent, Non-Executive.
— Catriona Macleod — Independent, Non-Executive.
— Mark Dewdney — Independent, Non-Executive.
— Jack Porus — nominated as a Director by Oregon Group Limited and thus not
Independent.
• Fish Farming Committee — No changes from FY25.
Attendance at Meetings
The table below sets out Director attendance at Board and Committee meetings during
the financial year to 31 January 2025.
DirectorBoard
Audit,
Finance
and Risk
Committee
People and
Performance
Committee
Health &
Safety and
Food Safety
Committee
Fish
Farming
Committee
Mark Dewdney (Chair)11/117/77/74/410/11
Paul Steere (Chair — Audit, Finance
and Risk Committee)
1
3/32/2
Paul Munro (Chair — Audit, Finance
and Risk Committee
)
10/106/6
Jack Porus (Chair — Fish Farming
Committee)
11/117/76/711/11
Catriona Macleod (Chair — Health
& Safety and Food Safety
Committee)
10/114/48/11
Chiong Yong Tiong10/114/4
Yuen Ping Carol Chen11/11
Victoria Taylor (Chair — People and
Performance Committee)
10/117/7
1
Paul Steere resigned as a Director of NZKS effective 31 March 2024.
63New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Recommendation 3.1
An issuer’s Audit Committee should operate under a written charter. An Audit
Committee should only comprise non-executive Directors of the issuer. One member
of the committee should be both independent and have an adequate accounting or
financial background. The Chair of the Audit Committee should be an independent
Director and not the Chair of the Board.
Audit, Finance and Risk Committee
The purposes of the Audit, Finance and Risk Committee include:
• Provide oversight for all elements of the Company’s risk.
• Provide oversight of financial reporting, internal control systems and disclosure
requirements.
• Review the performance, appointment and services provided by the external auditor,
including assessment of auditor independence.
• Provide oversight of the climate-related risks and opportunities faced by the
Company and assist with the preparation of climate related disclosures.
• Provide oversight of the Governance of complex, transformational projects that may
be novel and carry relatively large financial expenditure and risk.
The members of the Committee are majority independent Directors and all non-
executive Directors. Paul Munro is the committee member who the Board identified as
being both independent and having an adequate accounting or financial background
(refer to Relevant Qualifications and Experience section).
The members of the Committee as at 31 January 2025 were:
• Paul Munro (Chair) — Independent, Non-Executive.
• Mark Dewdney — Independent, Non-Executive.
• Jack Porus — nominated as a Director by Oregon Group Limited and thus not
Independent.
The Chair of the Audit, Finance and Risk Committee and the Board Chair are
different people.
Relevant Qualifications and Experience
Paul Munro (Audit, Finance and Risk Committee Chair) — Paul is a Chartered
Accountant Fellow (FCA) of Chartered Accountants Australia New Zealand (CAANZ)
and a Chartered Fellow (CfInstD) of the New Zealand Institute of Directors (IoD).
Paul has extensive financial and commercial experience across a broad cross section
of companies and industries including a 24-year career as a Corporate Finance
Partner at Deloitte.
Mark Dewdney — Mark holds a Bachelor of Management Studies with an extensive
career across primary industries in both executive and governance capacities.
Jack Porus — Jack holds bachelor’s degrees in Law and Commerce and has extensive
commercial experience as both a consultant and in a governance capacity.
The Audit, Finance and Risk Committee held seven meetings during the period to
31 January 2025. The agenda items for each meeting generally relate to financial
governance, external financial reporting, external audit, and risk management.
64New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Recommendation 3.2
Employees should only attend Audit Committee meetings at the invitation of the
Audit Committee.
Meeting Attendance
All Directors who are not members of the Audit, Finance and Risk Committee and
employees are only entitled to attend meetings of the Audit, Finance and Risk
Committee at the invitation of the Audit, Finance and Risk Committee.
The CEO, CFO, and Head of Finance and Sustainability are regularly invited to attend
Audit, Finance and Risk Committee meetings. The Committee also regularly holds
private sessions with the external auditors, from which Management are excluded.
Recommendation 3.3
An issuer should have a Remuneration Committee which operates under a written
charter (unless this is carried out by the whole Board). At least a majority of the
Remuneration Committee should be independent Directors. Management should only
attend Remuneration Committee meetings at the invitation of the Remuneration
Committee.
Recommendation 3.4
An issuer should establish a nomination committee to recommend Director
appointments to the Board (unless this is carried out by the whole Board), which should
operate under a written charter. At least a majority of the nomination committee
should be independent Directors.
People and Performance Committee
The People and Performance Committee’s role is to assist the Board by:
• Overseeing the management of people and performance activities of the Company.
• Overseeing the Company’s remuneration structure, policies, procedures and practices
to ensure the Company’s remuneration is fair and reasonable.
• Defining the roles and responsibilities of the Board and senior Management.
• Reviewing and making recommendations on Board composition and succession.
In particular, the People and Performance Committee’s role is to ensure that the
Board is balanced in terms of skills and knowledge and to ensure that the method of
nomination and appointment of Directors is transparent.
The People and Performance Committee shall comprise of, wherever possible, a majority
of independent Directors.
The members of the Committee as at 31 January 2025 were:
• Victoria Taylor (Chair) — Independent, Non-Executive.
• Mark Dewdney — Independent, Non-Executive.
• Jack Porus — nominated as a Director by Oregon Group Limited and thus not
Independent.
No Executive Directors sit on this Committee.
The Committee held seven meetings during the financial year to 31 January 2025.
65New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Recommendation 3.5
An issuer should consider whether it is appropriate to have any other Board
committees as standing Board committees. All committees should operate under
written charters. An issuer should identify the members of each of its committees,
and periodically report member attendance.
Health & Safety and Food Safety Committee
The Company has, since 2014, operated a management Health & Safety Steering
Group, generally meeting quarterly and with attendance by a Board Director.
The Board’s commitment to ensuring a safe and healthy workplace for team
members, contractors and visitors led to it establishing a Health & Safety and Food
Safety Committee, which operates under a written charter.
The primary functions of the Health & Safety and Food Safety Committee are:
• To assist the Board to provide leadership and policy for health & safety and
food safety.
• To assist the Board to fulfil its responsibilities and to ensure compliance with all
legislative and regulatory requirements in relation to the management of health &
safety, and food safety practices of the Company.
• To support the ongoing improvement of health & safety and food safety in the
workplace.
• To identify health & safety risk, and food safety risk across the Company’s
operations; propose or endorse mitigation measures; and ensure such further
measures to be enacted so the risk is managed to as satisfactory level as practical.
The members of the Committee as at 31 January 2025 were:
• Catriona Macleod (Chair) — Independent, Non-Executive.
• Mark Dewdney — Independent, Non-Executive.
• Chiong Yong Tiong — nominated as a Director by Oregon Group Limited and thus not
Independent.
The Committee held four meetings during the financial year to 31 January 2025.
Fish Farming Committee
A Fish Farming Committee has been established to consider all aspects of NZKS'
fish farming.
The primary functions of the Fish Farming Committee are:
• To assist the Board in considering key aspects of NZKS' fish farming.
• To support the ongoing improvement in fish health and farming strategies.
• Ensure the identification of both the opportunities and risks to the Company’s fish
farming operations.
The members of the Committee as at 31 January 2025 were:
• Jack Porus (Chair) — nominated as a Director by Oregon Group Limited and thus not
Independent.
• Mark Dewdney — Independent, Non-Executive.
• Catriona Macleod — Independent, Non-Executive.
The Committee held eleven meetings during the financial year to 31 January 2025.
66New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Recommendation 3.6
The Board should establish appropriate protocols that set out the procedure to be
followed if there is a ‘control transaction’ for the issuer including the procedure for
any communication between the issuer’s Board and Management and the bidder.
The Board should disclose the scope of independent advisory reports to shareholders.
These protocols should include the option of establishing an independent control
transaction committee, and the likely composition and implementation of an
independent control transaction committee.
Control Transaction Protocols
The Board has documented and adopted a series of protocols to be followed in the
event of a control transaction being made, including communication between the
issuer’s Board and Management and the bidder.
It is proposed that the Board would form a committee to oversee the protocols and
act as the Control Transaction Committee. The Committee would have responsibility
for managing the control transaction in accordance with the Board and the New
Zealand Takeovers Code and other applicable legislation.
4. Principle 4 — Reporting and Disclosure
The Board should demand integrity in financial and non-financial reporting, and in the
timeliness and balance of corporate disclosures.
Recommendation 4.1
An issuer’s Board should have a written continuous disclosure policy.
Shareholder Communications and Market Disclosure
The Company’s Board is committed to the principle that high standards of reporting
and disclosure are essential for proper accountability between the Company and its
investors, employees and stakeholders.
The Company achieves these commitments, and the promotion of investor confidence,
by ensuring that trading in its shares takes place in an efficient, competitive and
informed market. The Company has in place a written Shareholder Communications
and Market Disclosure Policy designed to ensure this occurs. The policy includes
procedures intended to ensure that disclosure is made in a timely and balanced manner
and in compliance with the NZX Listing Rules, such that:
• All investors have equal and timely access to material information concerning the
Company, including its financial situation, performance, ownership and governance.
• Company announcements are factual and presented in a clear and balanced way.
The CFO is responsible for the Company’s compliance with NZX and ASX continuous
disclosure requirements and the Board is advised of, and considers, continuous disclosure
issues at each Board meeting or whenever else required.
67New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Significant market announcements, including the preliminary announcement of the half
year and full year results, the financial statements for those periods, and any advice of a
change in earnings forecast, are approved by the Board.
Directors consider at each Board meeting whether there is any material information
which should be disclosed to the market.
Recommendation 4.2
An issuer should make its Code of Ethics, Board and Committee charters and the
policies recommended in the NZX Code, together with any other key governance
documents, available on its website.
The Company’s key Corporate Governance documents, including charters and policies,
can be found at www.kingsalmon.co.nz/governance
Recommendation 4.3
Financial reporting should be balanced, clear and objective.
Financial Reporting
The Board is responsible for ensuring the integrity and timeliness of the Group's
financial reporting. As noted above under ‘Board Committees’, the Audit, Finance and
Risk Committee monitors financial reporting risks in relation to the preparation of the
financial statements.
The Audit, Finance and Risk Committee, with the assistance of management, works
to ensure that the financial statements are founded on a sound system of risk
management and internal control, and that the system is operating effectively in all
material respects in relation to financial reporting risks.
The Audit, Finance and Risk Committee oversees the quality and integrity of external
financial reporting including the accuracy, completeness, balance and timeliness of
financial statements. It reviews half-year and annual financial statements and makes
recommendations to the Board concerning accounting policies, areas of judgement,
compliance with financial reporting standards, stock exchange and legal requirements,
and the results of the external audit.
All interim and full-year financial statements are prepared in accordance with relevant
financial standards.
Recommendation 4.4
An issuer should provide non-financial disclosure at least annually, including considering
environmental, social and governance (ESG) factors and practices. It should explain
how operational or non-financial targets are measured. Non-financial reporting should
be informative, include forward-looking assessments, and align with key strategies and
metrics monitored by the Board.
Non-Financial Reporting
The Company is committed to providing non-financial disclosure that is balanced, clear
and objective. Reporting of environmental, social and governance factors is contained
in this Annual Report. The Company is continuing to develop its non-financial reporting
metrics. Specifically, a recent focus was establishing the Company’s Greenhouse Gas
(GHG) emissions base year for our GHG emissions disclosure under the Aotearoa
New Zealand Climate Standards. These GHG emissions are subject to external assurance
in FY25. The GHG emissions will form another input to contribute to the continued
development of the Company’s non-financial reporting.
68New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Non-financial reporting is provided throughout this Annual Report and is referenced
throughout the following sections:
• Overview
• Healthy Environments
• Healthy Communities
• Healthy Kai
• Leadership & Corporate Governance
Aotearoa New Zealand Climate Standards
The Company falls into the category of a Climate Reporting Entity under the Financial
Markets Conduct Act 2013. The Company’s climate-related disclosures for the year
ended 31 January 2025 will be prepared in accordance with the Aotearoa New Zealand
Climate Standard requirements. The Company has relied upon the Exemption Notice
provided by the Financial Markets Authority to not include its climate-related disclosures
in this Annual Report. The Company has instead provided the link below to where the
FY25 climate-related disclosures will be available when they are released (which will be
no later than 31 May 2025).
5. Principle 5 — Remuneration
The remuneration of Directors and Executives should be transparent,
fair and reasonable.
Recommendation 5.1
An issuer should have a remuneration policy for the remuneration of Directors.
An issuer should recommend Director remuneration to shareholders for approval in a
transparent manner. Actual Director remuneration should be clearly disclosed in the
issuer’s Annual Report.
Recommendation 5.2
An issuer should have a remuneration policy for remuneration of executives,
which outlines the relative weightings of remuneration components and relevant
performance criteria.
Recommendation 5.3
An issuer should disclose the remuneration arrangements in place for the CEO in
its Annual Report. This should include disclosure of the base salary, short-term
incentives and long-term incentives and the performance criteria used to determine
performance-based payments.
Read our Climate-Related
Disclosure Report
69New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Remuneration Report
This Remuneration Report outlines the Company’s overall reward strategy for the
period to 31 January 2025 and provides detailed information on the remuneration
arrangements in this period for the Directors of the Company, including the CEO, and
other nominated executives.
Remuneration Governance
The Company’s Remuneration Policy, which may be amended from time to time,
is reviewed regularly. The Company has also established a number of additional
policies to support a strong governance framework and uphold ethical behaviour and
responsible decision making. The Company has had regard to the NZX Remuneration
Reporting Template in preparing this report.
The People and Performance Committee is responsible for making recommendations
to the Board on remuneration policies and packages for Directors, the CEO and
nominated executives. The People and Performance Committee’s role is set out in the
People and Performance Committee’s Charter, which is available on the Company’s
website at www.kingsalmon.co.nz/governance
All Directors are entitled to attend meetings of the People and Performance
Committee by standing invitation provided that Executive Directors are not entitled
to attend meetings where they are conflicted. Employees are only entitled to attend
meetings of the People and Performance Committee at the invitation of the People
and Performance Committee.
The primary objectives of the Remuneration Policy are to provide a competitive
and flexible structure that reflects market practice but is tailored to the specific
circumstances of the Company and which reflects each person’s duties and
responsibilities, in order to attract, motivate and retain people of the appropriate
quality. This includes the Company’s responsibility to monitor diversity and ensure
pay equity.
The People and Performance Committee completed a review of the Remuneration
Policy in FY25. As part of this review, the policy was updated to include the
remuneration of Directors.
The People and Performance Committee reviews market data on remuneration
structure and quantum. In FY25, an external review was conducted on the CEO
remuneration package. The remuneration packages of the CEO and nominated
executives are structured to include a Short-Term Incentive Scheme (STI Scheme)
that is directly linked to the overall financial and operational performance of the
Company. The CEO and nominated executives may also be invited to participate
in the Company’s Long-Term Incentive Performance Share Rights Scheme (LTI PSR
Scheme). The long-term benefits of the LTI PSR Scheme are currently conditional
upon the Company’s total shareholder return meeting certain performance hurdles.
Further information on the People and Performance Committee, including the
responsibilities of the People and Performance Committee and meeting attendance
during FY25, can be found on page 63 and 65 of the Annual Report.
Remuneration Structure
In accordance with best practice corporate governance, the structure of non-
executive Director remuneration is separate and distinct from the remuneration
of the CEO and other Executives.
70New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Components of Compensation — Non-Executive Directors
a. Remuneration
The Board seeks to set aggregate remuneration for non-executive Directors at a level
which provides the Company with the ability to attract and retain Directors of the
highest calibre, whilst incurring a cost which is acceptable to shareholders.
No remuneration is payable to non-executive Directors unless it is approved by the
Company’s shareholders. The NZX Listing Rules specify that shareholders can approve a
per Director remuneration amount or an aggregate Directors’ fee pool.
The aggregate remuneration paid to non-executive Directors and the manner in which
it is apportioned amongst Directors is reviewed annually, with any proposed increase
in the aggregate pool put to shareholders for approval at the Company’s next Annual
Shareholders’ Meeting. The Board reviews its fees to ensure the Company’s non-
executive Directors are fairly remunerated for their services, recognising the level of skill
and experience required to fulfil the role, and to enable the Company to attract and
retain talented non-executive Directors. The process involves benchmarking against a
group of peer companies. In addition, the Board reviews the Committee structure and
appropriate level of resourcing required to make an on-going contribution to long term
value creation.
Shareholders approved an aggregate fee pool of $660,000 at the June 2024 Annual
Shareholders’ Meeting. The Company had seven Directors at the time the fee pool
was approved.
In connection with the increase in the Directors’ fee pool, the Board commissioned an
independent Directors’ fees review from Strategic Pay, which resulted in a recommended
increase in Director fees based on several factors. These factors included NZKS’
organisation size, ownership, industry and relevant market data. This market data
Governance BodyPositionFee for reporting period
Board
Chair$140,000
Director$70,000
Audit, Finance and Risk Committee
Chair$15,000
Member$3,000
People and Performance Committee
Chair$12,000
Member$3,000
Health & Safety and Food Safety Committee
Chair$12,000
Member$3,000
Fish Farming Committee
Chair$12,000
Member$3,000
includes market data from the 2024 Strategic Pay NZ Directors’ Fee Report, and relevant
market comparator information based on NZKS market position.
Each non-executive Director receives a fee for services as a Director of the Company.
An additional fee is also paid to the Committee Members (excluding Chair) of each
Board committee. The payment of an additional fee recognises the additional time
commitment required by the committee Chair/Members. Directors are also entitled to
be reimbursed for costs associated with carrying out their duties. The table below sets
out the current allocation of the approved Director fee pool to the Company’s Board
and Committee roles:
71New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Non-executive Directors have no entitlement to any performance-based remuneration
or participation in any share-based incentive schemes. This approach reflects the
differences in the role of the non-executive Directors, which is to provide oversight and
guide strategy, and the role of Management, which is to operate the business
and execute the Company’s strategy. Non-executive Directors are encouraged to be
shareholders but are not required to hold shares in the Company.
A breakdown of the Board and Committee fees paid during FY25 are set out in the
table below:
Fees paid for serving on CommitteesTotal
DirectorBase FeeAdditional Fee
3
Audit, Finance and
Risk Committee
People and Performance
Committee
Health & Safety and Food
Safety Committee
Fish Farming
Committee
Fees paid
/ payable
Mark Dewdney (Chair) $137,500 $5,000 - - - - $142,500
Jack Porus (Chair — Fish Farming Committee) $68,750 $5,000$2,250 $2,250 - $12,000 $90,250
Paul Steere (Chair — Audit, Finance and Risk Committee)
1
$10,833 - $2,500 - - - $13,333
Paul Munro (Chair — Audit, Finance and Risk Committee)
2
$63,333 $5,000 $12,500 - - - $80,833
Catriona Macleod (Chair — Health & Safety and Food Safety
Committee)
$68,750 $5,000 - - $12,000 $2,250 $88,000
Chiong Yong Tiong $68,750 $5,000 - - $2,250 - $76,000
Yuen Ping Carol Chen $68,750 $5,000 - - - - $73,750
Victoria Taylor (Chair — People and Performance Committee) $68,750 $5,000 -$12,000 - - $85,750
Total $555,416 $35,000 $17, 250 $14,250 $14,250 $14,250 $650,416
1
Paul Steere resigned as a Director of NZKS effective 31 March 2024.
2
Paul Munro joined the Board as a Director of NZKS 1 March 2024.
3
Following a review of the workload carried out by the Board in FY25 which included delivery of the Company's
first Climate-Related Disclosures, an organisational capability review and securing of significant funding
partnership with the New Zealand Government under the Sustainable Food and Fibre Futures fund, the Board
resolved in March 2025 to approve an additional payment of $5,000 to Directors to reflect this additional work.
72New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Remuneration of CEO and Employees
The number of employees of the
Group (including former employees),
not being Directors, who received
remuneration and other benefits
in excess of $100,000 in the period
to 31 January 2025 is set out in the
following remuneration bands:
Components of Compensation — CEO and Other Nominated Senior Leaders
a. Structure
The Company aims to reward the CEO and nominated Senior Leaders with a level and
mix of remuneration commensurate with their position and responsibilities within the
Group, so as to:
• Reward them for Company performance against targets set by reference to
appropriate benchmarks and key performance indicators.
• Align their interests with those of shareholders.
• Ensure total remuneration is competitive by market standards.
Remuneration consists of both fixed and variable remuneration components. The
variable remuneration component comprises the Short-Term Incentive Scheme and the
Long-Term Incentive Scheme.
The proportion of fixed remuneration and variable remuneration is established for the
CEO and for each nominated Senior Leader by the Board, following recommendations
from the People and Performance Committee and the CEO (in the case of the
nominated Senior Leaders only).
The remuneration packages for the CEO and nominated Senior Leaders are all subject to
Board approval. A new LTI scheme was approved by the Board in FY25, and grants were
made under this scheme in FY25.
Remuneration
1
FY25FY24
$100,000 to $109,999209
$110,000 to $119,9991210
$120,000 to $129,99953
$130,000 to $139,99976
$140,000 to $149,99956
$150,000 to $159,99945
$160,000 to $169,99963
$170,000 to $179,99933
$180,000 to $189,99924
$190,000 to $199,99913
$200,000 to $209,99930
$210,000 to $219,99930
$220,000 to $229,99911
$230,000 to $239,99910
$240,000 to $249,99911
$250,000 to $259,99910
$260,000 to $269,99911
$270,000 to $279,99901
$300,000 to $309,99901
$310,000 to $319,99910
$330,000 to $339,99910
$370,000 to $379,99901
$400,000 to $409,99910
$420,000 to $429,99910
$460,000 to $469,99901
$490,000 to $499,99910
$600,000 to $609,99901
$660,000 to $669,99910
1
Includes redundancy and other prescribed fringe benefits.
73New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
The total value of other benefits paid to the CEO for FY24 and FY25
(including under the STI Scheme and LTI Scheme) is as follows:
Pay for performance
Total
Remuneration
CEOYear
Base
salary
1
Benefits
2
Remuneration
Short-Term Incentive (STI)Long-Term Incentive (LTI)
Total at risk
Paid
4
Amount paid as a % of
maximum Award
Earned
5
Amount paid as a %
of maximum Award
Earned
Amount earned as a %
of maximum Award
Graeme Tregidga
3
FY24$213,580$30,554$244,134$121,341100%---0%$121,341$365,475
Carl Carrington
3
FY24$259,026$13,330$272,356$74,25090%---N/A$74,250$346,606
Carl CarringtonFY25$560,099$24,582$584,681--$86,21350%-N/A$86,213$670,894
1
Base salary is the salary that has been paid to an employee, excluding any additional compensation benefits.
2
Benefits include superannuation payments, insurance premiums, any cashed in leave and vehicle allowances.
3
Carl Carrington was appointed as CEO effective 7 August 2023, following Carl’s appointment, Graeme Tregidga has
moved into a Chief Commercial Officer role (The payments to Graeme are for his time as acting CEO only).
4
Short-Term Incentive payments correspond to the achievement of performance targets in that reporting
period (i.e. The Short-Term Incentive in FY24 relates to the achievement of performance related targets in
FY24, even though it was paid in FY25).
5
Short-Term Incentive amounts payable (The amount the employee is currently entitled to receive and is
no longer at risk). (i.e. The Short-Term Incentive in FY25 relates to the achievement of performance related
targets in FY25, even though these will be paid in FY26).
74New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
1. Fixed Annual Remuneration
Remuneration levels are reviewed annually to ensure that they are appropriate for the
responsibility, experience and performance of the CEO and each nominated Senior Leader
and are competitive with the market.
In addition, the overall mix of variable compensation and their terms are also considered
when setting and/or reviewing fixed remuneration.
The CEO and nominated Senior Leaders receive their fixed annual remuneration in cash
and a limited range of prescribed benefits such as superannuation, motor vehicle and
health insurance. The total employment cost of any remuneration package, including
fringe benefit tax, is considered in determining an employee’s fixed annual remuneration.
2. Variable Remuneration — STI Scheme
The objective of the STI Scheme is to link the achievement of the annual financial and
operational targets with the remuneration received by the Senior Leaders charged with
meeting those targets. The total potential remuneration under the STI Scheme is set at a
level to provide sufficient incentive to the Senior Leaders to achieve the targets such that
the cost to the Company is flexible and in line with the trading outcome for the year.
For the STI, participants’ performance against an agreed set of financial and non-
financial metrics is monitored on an ongoing basis throughout the financial year by the
People and Performance Committee.
The People and Performance Committee considers that the above targets align with the
objectives of delivering sustainable earnings. The Company intends to develop more ESG
targets that will be included within performance objectives. This is an area that will be
reassessed annually as the Company matures in this reporting space.
The People and Performance Committee considers the performance against the targets
and determines the amount, if any, to be allocated to the CEO and nominated Senior
Leaders. STI Scheme payments are delivered as a taxable cash bonus and are payable
on completion of the annual audited financial statements and employee engagement
survey results.
STI Scheme payment values are set as a percentage of base cash remuneration, being
30% for the CEO and 25% for the other nominated Senior Leaders for the financial
period to 31 January 2025. For the financial period to 31 January 2025, in addition to the
CEO, there were 9 nominated Senior Leaders in the STI Scheme.
In addition to the CEO and nominated Senior Leaders (noted above) a number of
individuals within the wider senior Management team are entitled to a STI of up to 10%
of their base cash remuneration.
The STI awards in respect of FY25 are assessed as earned in FY25 but will be paid
after release of the FY25 annual results (i.e. will be paid during FY26), other than the
employee engagement score which is assessed post annual results. The employee
engagement survey is scheduled for April 2025.
75New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Performance HurdlesWeightingDescription
Profitability30%
Board approved budgeted pro-forma operating
EBITDA target
Profitability15%
Board approved Gross Margin targets. Gross
Margin is defined as sales less direct costs (excludes
corporate overheads)
Cost control15%
Board approved overhead targets. Overheads
include corporate office expenditure including
corporate personnel costs, advertising and
promotional spend and professional services fees etc
Return on Capital15%
Board approved return on capital targets calculated
as net profit after tax/average equity
Employee
engagement score
20%Board approved employee engagement score
Health & Safety
0% (target must be achieved
for STI to be eligible)
Board approved Health & Safety conversations
and site visit targets
Individual target5%
A specific deliverable set annually by the
NZKS Board
Performance HurdlesSTI WeightingAwardedEarned
% Earned of
Awarded
Pro-forma operating
EBITDA results
30%$51,728$25,86415%
Gross Margin result15%$25,864$25,864100%
Overhead cost within
budget
15%$25,864$25,864100%
Net profit / average
equity
15%$25,864-0%
Employee engagement
score
1
20%$34,485-0%
Completion of Health &
Safety conversations
----
Individual target5%$8,621$8,621100%
Total100%$172,426 $86,21350%
1
The employee engagement score is scheduled to be assessed in April 2025.
In addition to the STI Scheme, the Board reserves the ability to pay ad hoc bonus
payments to any employee at the Board's discretion.
The CEO’s key performance indicators for the FY25 STI award are outlined below:
A breakdown of the amount earned by the CEO for achievement of the FY25 STI key
performance indicators is as follows:
76New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Variable Remuneration — LTI Scheme
The LTI Scheme has been designed to link reward with key performance indicators
that drive sustainable growth in shareholder value over the long term. The objectives
of the LTI Scheme are to:
• Align the CEO and nominated participants’ interests with those of shareholders.
• Help provide a long-term focus.
• Retain high calibre senior employees by providing an attractive equity-based
incentive that builds an ownership of the Company mindset, encouraging
executives to think and act like owners.
There are three LTI schemes discussed in this section:
• Executive Share Ownership Scheme (pre-IPO).
• LTI Share Scheme (tranches issued between 2016–2022).
• LTI PSR scheme (Commenced July 2024).
Executive Share Ownership Scheme (pre-IPO)
The CEO and certain other senior executives were participants in an Executive Share
Ownership Scheme prior to the IPO, in which participants have been provided with
an interest-free loan of up to 200% of the amount which the senior executive invests
in the Company. As at 31 January 2025, 390,021 shares are held by current or former
senior executives via the Ownership Scheme, partly funded by interest free loans of
$193,750. As at 31 January 2025, there were 3 nominated participants remaining in
the Executive Share Ownership Scheme, (31 January 2024: 4 nominated executives).
These shares, which have been subject to sale restrictions since the IPO, were
released from escrow on announcement of the 2018 financial results.
Grant Rosewarne resigned as CEO effective 1 November 2022, and Graeme Tregidga
was appointed as acting CEO. On 6 July 2023, Carl Carrington was announced as CEO,
commencing 7 August 2023 (no LTI was issued to Carl in FY24). In connection with
Grant Rosewarne’s resignation, the Company granted Mr Rosewarne a Put Option in
connection with certain long-term incentive plans for the purpose of repaying a loan
owed by Mr Rosewarne to the Company in relation to the acquisition of certain shares
held by a family trust associated with Mr Rosewarne. Pursuant to the Put Option, Mr
Rosewarne could require the Company to acquire up to 2,340,883 shares (the Option
Shares) held by Mr Rosewarne and Bianca Rosewarne as holders of the Rosewarne NZ
Family Trust issued in connection with certain long-term incentive plans of NZKS for
the purpose of repaying a loan owed by Mr Rosewarne to the Company in relation to
the acquisition of the Option Shares.
On the 21 February 2024, Mr Rosewarne gave the Company notice to exercise the
aforementioned Put Option. Pursuant to that Put Option, NZKS acquired 3,272,437
ordinary shares on 28 February 2024 (being 2,340,883 option shares plus an additional
931,554 shares to settle the shortfall on the loan) the proceeds of which have been
applied to the repayment of Mr Rosewarne’s loan balance. The shares acquired were
subsequently cancelled on the day of acquisition. NZKS' CEO is not a participant in
the Executive Share Ownership Scheme, having joined NZKS in August 2023.
LTI Share Scheme (tranches issued between 2016–2022)
Under the LTI Share Scheme, the CEO and nominated participants are offered an
interest-free loan which is to be applied to acquire shares in the Company. Shares
acquired under the LTI Share Scheme are held by a custodian and will only vest subject
to the achievement of performance hurdles and employment tenure. All dividends
paid during this period are offset against the loan balance. Once the shares vest, the
employee remains obligated to repay the outstanding balance of the loan.
77New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
If an employee leaves employment before the expiry of the three-year period, the
custodian may exercise a call option to have the employee’s beneficial interest in
the shares transferred to it in consideration of the custodian taking the balance of
the loan. Any shares so transferred can be used for future grants or alternatively,
the custodian is authorised to sell that employee’s shares with the proceeds applied
to repay the balance of the loan, with any deficit covered by the Company and any
surplus retained by the Company.
Each employee’s loan amount (which determines how many shares will be acquired)
is set as a percentage of their base salary and selected employees will be offered a loan
for this amount if the criteria set by the Board are met.
The last tranche issued under this scheme was in FY22. NZKS’ CEO is not a participant
in the LTI Share Scheme, having joined NZKS in August 2023.
As of 31 January 2025, 279,639 vested shares are held by current or former senior
executives via the LTI Share Scheme, funded by interest free loans of $284,045. As at 31
January 2025, there were 11 nominated participants remaining in the LTI Share Scheme.
LTI PSR scheme (Commenced July 2024)
In July 2024, the Board adopted a performance share rights (PSR) scheme for the CEO
and nominated participants (LTI PSR Scheme). Under the LTI PSR Scheme, participants
are awarded PSRs which gives them the right to receive ordinary shares in the
Company subject to achieving certain performance hurdles and remaining employed
with the Group for a certain period. The objectives of the LTI PSR Scheme are to
reward and retain key employees, to drive longer-term performance and to encourage
longer-term decision making by employees. The LTI PSR Scheme also aims to align the
incentives of participants with the interests of the Company’s shareholders.
The performance hurdle used for all grants made to date under the LTI PSR Scheme is a
relative total shareholder return (TSR) hurdle. The value of PSRs awarded to participants
in the LTI PSR Scheme is set at a fixed amount which reflects between 10% and 35% of
participants’ base cash remuneration. The number of PSRs issued under each grant is
then determined based on the market value of NZKS’ shares using a volume weighted
average price over the 20 trading days up to and including the commencement date of
the grant.
CEO remuneration under LTI PSR Scheme
The value of PSRs awarded to the CEO annually under the LTI PSR Scheme is set at a
fixed amount which reflects 35% of the CEO’s base cash remuneration.
Grants of PSRs under the LTI PSR Scheme with vesting dates on or after 31 January 2025
were made on 1 July 2024 and commenced on 29 May 2023 (FY24(i) Grant), 22 January
2024 (FY24(ii) Grant) and 29 April 2024 (FY25 Grant).
The key terms and conditions related to the PSRs issued under the LTI PSR Scheme are as
follows:
• The PSRs are granted for nil consideration and have a nil exercise price.
• The participant must remain an employee of the Company as at the relevant
vesting date.
• The PSRs issued under the FY24(i) Grant, FY24(ii) Grant and FY25 Grant each
comprise a single tranche. Provided the performance hurdle has been achieved on
the vesting date, (being the date that is 21 trading days following the release of
the Company’s financial results for the period ended 31 January 2026 to NZX and
ASX for the FY24(i) Grants and FY24(ii) Grants and the date that is 21 trading days
following the release of Company’s financial results for the period ended 31 January
2027 to NZX and ASX for the FY25 Grant), the PSRs will become eligible for exercise
78New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
by the participants. The performance hurdle is a relative TSR hurdle. PSRs will become
eligible for exercise where the Company’s TSR from the commencement date to the
vesting date is a positive amount and is greater than the 50th percentile TSR of the
NZX50 (excluding the Company and banking groups) at the commencement date
for each Grant (NZX Comparator Group).
• The percentage of PSRs that become eligible for exercise will increase on a straight
line basis from 50% where the Company’s TSR is a positive amount and is equal to
the 50th percentile of the NZX Comparator Group to 100% where the Company’s TSR
is a positive amount and is equal to or greater than the 75th percentile of the NZX
Comparator Group.
• The TSR will be calculated using the volume weighted average sale price of the
relevant share or unit on its designated exchange over the 20 trading days prior to
and excluding the commencement date or the vesting date (as applicable).
Awarded During the
Reporting Period
PSRs Lapsed
During the
Reporting
Period
Shares Vested During the
Reporting Period
Shares Issued /Transferred
During the Reporting Period
Balance of PSRs
at 31 January
2025
SchemePSR Award DateVesting Date
Balance of PSRs
at 31 January
2024
PSRs
Awarded
Market Price
at Award
Shares Vested
Market Price at
Vesting Date
Vesting Date
Shares Issued
/Transferred
Market Price at
Issue / Transfer
Date
Issue /
Transfer
Date
FY24(ii)Jul 2024Apr 2026-368,774$96,250-------368,774
FY25Jul 2024Apr 2027-720,974$192,500-------720,974
Total1,089,748$288,7501,089, 748
•
On the vesting date, subject to achieving performance hurdles, each PSR entitles
the CEO to one ordinary share. The CEO is liable for tax on the shares received at this
point. The Company may, in consultation with the CEO, elect to pay this tax on his
behalf through PAYE, subject to appropriate arrangements being entered into for the
reimbursement by the CEO of the tax to the Company.
No PSRs were eligible for vesting during FY25. The PSRs under the FY24(i) Grant and
FY24(ii) Grant will not become eligible for vesting until FY27. The PSRs under the FY25
Grant will not become eligible for vesting until FY28.
A summary of the PSRs granted to the CEO which lapsed or vested during FY25 or which
remain subject to vesting conditions as at 31 January 2025 is shown below:
79New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Loans Outstanding on Vested Shares
The table below shows the loans associated for shares which have vested under both the
Executive Share Ownership scheme prior to the IPO and LTI Schemes:
SchemeIssue dateVesting dateHurdle PriceShares GrantedShares ForfeitedShares Vested
Shares Settled/
sold back to
NZKS
Shares remaining
with Loan
Balance
Loans in respect
of these shares
Less dividend
received after
tax paid
Net loans
Executive Share Ownership Scheme (pre-IPO)
Senior Executive
Share Ownership
Scheme
2011–201629 Aug 2018 $0.48 3,062,164 - 3,062,164 (2,672,143)390,021 $193,750 - $193,750
LTI scheme (tranches issued between 2016 — 2022)
LTI IPO31 Aug 20161 Sep 2019 $1.12 993,671 (220,500) 773,171 (563,086)210,085 $235,295 ($33,234) $202,061
LTI 2017a29 Sep 20171 Sep 2020 $1.22 270,274 (15,073) 255,201 (194,547)60,654 $73,998 ($6,773) $67,225
LTI 2017b29 Sep 20171 Sep 2020 $1.77 47,241 (17,611) 29,630 (20,730)8,900 $15,753($994) $14,759
Total 1,311,186 (253,184) 1,058,002 (778,363)279,639 $325,046($41,001) $284,045
Total 4,373,350 (253,184) 4,120,166 (3,450,506)669,660 $518,796 ($41,001) $477,795
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New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
6. Principle 6 - Risk Management
Directors should have a sound understanding of the material risks faced by the issuer
and how to manage them. The Board should regularly verify that the issuer has
appropriate processes that identify and manage potential and material risks.
Recommendation 6.1
An issuer should have a risk management framework for its business and the issuer’s
Board should receive and review regular reports. An issuer should report the material
risks facing the business and how these are being managed.
Risk Management Framework
The Board is responsible for ensuring that key business risks are identified, and that
appropriate controls and procedures are in place to effectively manage those risks.
Risk registers are regularly reviewed by senior Management and any changes to material
risks are reported to the Board.
The Audit, Finance and Risk Committee has overall responsibility for ensuring that
the Company’s risk management framework is appropriate and that it appropriately
identifies, considers and manages risks. In addition, risks are also considered at the other
committees and reported through to the Board by committee Chairs.
Risk management is an integral part of the Company’s business. A risk management
framework incorporating a risk register is used to identify those situations and
circumstances in which the Company may be materially at risk and for which
risk mitigation activities are appropriate. This approach is intended to provide a
comprehensive, company-wide awareness of risk in senior Management, supported by
a consistent method of identifying, assessing, controlling, monitoring and reporting
existing and potential risks to the Company’s business.
CEOYearShares VestedLoan
Graeme Tregidga
1
FY24 185,594 $118,562
1
Carl Carrington was appointed as CEO effective 7 August 2023, following Carl’s appointment, Graeme Tregidga has
moved into a Chief Commercial Officer role.
Allocation DateVesting DateNumber of Shares
Scheme
Balance at start
of year
Sold during the
year
Balance at the
end of the year
Employee Share
Ownership Plan
19 Oct 201619 Oct 2016 44,606 (5,786) 38,820
Employee Share Ownership Scheme
At the time of the Company’s IPO, it established an Employee Share Ownership Scheme
to facilitate an increase in the level of participation by employees as shareholders, which
improves the alignment of interests between employees and shareholders. Under the
scheme, each eligible employee was offered an interest free loan up to $5,000 to fund
50% of the subscription price for the shares which the employee wished to acquire in the
Company. Employees are obliged to repay their loan when the shares are sold or when
they leave the Company.
A total of 187,076 shares were issued at the time, supported by loans of $104,762 from
the Company. During the period to 31 January 2025, 2 employees holding shares left the
Company (31 January 2024: 2), and no shares have been sold by current employees (31
January 2024: 0). As at 31 January 2025, the following shares were held by employees
under the Employee Share Ownership Scheme.
81New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Key risks that NZKS has identified are provided below, risks are dynamic and
as such this section does not (and does not purport to) set out all of the risks
facing NZKS as some risks may be unknown and other risks, currently believed
to be immaterial, could turn out to be material.
AreaDescription of RiskKey Strategies to Mitigate
Fish mortalityFish mortality has a significant impact on the profitability and financial stability of NZKS as only
the fish that survive to the point of harvest are able to be sold. Every year, a number of fish will
die prior to harvest due to a range of factors.
The cause of fish mortality is multi-factorial with the dominant correlation currently being
with prolonged elevated water temperature which increases stress and reduces the salmon’s
resistance to bacterial and other pathogens. Other factors include opportunistic microorganism/
diseases, feed-related issues, failed smoltification, predators, and other stressors, individually
or in combination. Whilst the interconnectivity of these factors is difficult to predict with any
certainty, rising water temperatures are increasingly becoming a major concern given the impact
of climate change.
Failed smoltification which is not linked to warmer waters does not create a large mortality
volume in terms of biomass or direct cost but it can have a significant opportunity cost due to
lost potential harvest.
While the trajectory of climate change is impossible to control at a company level, NZKS
currently manages the risk of fish mortality by: fallowing warmer, low flow sites (either seasonally
over summer or completely), actively monitoring fish health and maintaining appropriate net
cleaning regimes. Immunisation of young salmon against specific pathogens at the freshwater
stage has also been in place for several years to build resilience prior to seawater entry. NZKS is
also undertaking R&D activities including researching thermotolerance within its King salmon
families to provide potential future mitigants against temperature risk.
Projects to reduce runting are also underway including works involving manipulating salinity,
photoperiod and diet options.
Access to waterspace
and water
Changes to local and central government policy surrounding aquaculture present a material
concern for NZKS, with the possibility that policy changes, however well intentioned, may present
an additional compliance burden, resulting in an increase to NZKS costs and/ or reduce the
biomass capacity at current consented and future farming locations. These impacts, individually
or in combination, may make farming salmon uneconomic. In addition, the Company’s
processing operations require access to water to process our harvested fish.
Recent legislative reforms e.g. Resource Management (Extended Duration of Coastal Permits
for Marine Farms) Amendment Bill has mitigated risks to securing tenure at existing seawater-
consented sites (all farms extended 20 years, no further than 2050). The conditions on some of
these sites will require updating.
NZKS is also undertaking monitoring observations at a second offshore site to provide future
space options. NZKS is assessing the viability of a new greenfield processing site in addition to
investigating ways to improve the efficiency of our existing processing site.
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New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
AreaDescription of RiskKey Strategies to Mitigate
Loss of key facilities As an integrated King salmon farming operation NZKS has a number of critical facilities. The loss
of any one of the facilities would have a significant impact on NZKS ability to grow, harvest and
sell King salmon.
Loss of key facilities could mean an inability to operate, or delays in production if livestock cannot
be transferred from one to the other. Delays in production, harvesting, and processing operations
could all lead to delays in getting product to consumers.
This could, depending on the severity, significantly impact both the financial performance and
position of NZKS.
Key facilities include:
Tentburn and Tākaka freshwater facilities, Nelson processing facility, seafarms across the
Marlborough Sounds, and the new Blue Endeavour site.
Under the current operating model key facilities create a single point of risk within the NZKS
supply chain.
Within the constraints of current operations for NZKS it is not possible to fully mitigate these
risks, as such NZKS continues to investigate how risks might be reduced. Mitigations include:
• Backup Broodstock held at Tentburn.
• Holding frozen sperm.
• A multiple spawning strategy that spreads the risk and reduces the opportunity
of total loss.
• Investments in hydrology mapping at hatcheries to inform opportunities to reduce flood
and drought risk.
• Insurance policies including material damage and business interruption insurance.
Future investments will provide further opportunities to mitigate some of these risks (i.e. a new
greenfield processing site).
Market accessNZKS products are sold to a number of export markets, and there is a risk that regulatory
change in specific markets will impair NZKS access to these markets, significantly impacting
sales levels and profitability. This may be a closure of the market, or the introduction of new rules
that impact NZKS products and may affect the time spent at entry ports for clearance. NZKS
international customers expect continuity of supply, which requires consistent access to key
markets in a timely manner and without extensive compliance obligations. Additionally, as NZKS
products are highly perishable, they also require swift clearance at the port, and extensive or
changing compliance requirements may hinder clearance timeframes.
NZKS' food safety team works closely with relevant government departments to ensure
compliance prior to its products leaving New Zealand, which is expected to limit the likelihood of
access to relevant markets being restricted. The food safety team also works with industry bodies
and government departments to forward plan for any longer-term compliance issues that may
arise in advance of activity in-market. In the past, NZKS has moved products between markets
in response to changes in pricing demand. Similarly, given the global demand for King salmon,
NZKS expects that if one market is closed or subject to more onerous restrictions, NZKS will be
able to find alternative channels to sell its products, however, the margins may be lower in the
short term.
Feed costs and qualityFeed is one of NZKS' largest costs. Sourcing good quality feed is crucial for NZKS as it is one
of the key contributors to fish performance and fish health. An increase in the cost of feed
or a decrease in the quality of feed will have a significant impact on NZKS operations and
profitability. Further, given the rarity of King salmon globally, research and development to
design feed specifically for King salmon is not extensively undertaken by global feed companies
and this can create risks when changing dietary components, including the risk of increased
fish mortality.
NZKS has an ability to pass price increases onto customers, however, it is unclear whether NZKS
will be able to fully pass on the increased cost of raw materials to customers. Risks around feed
price and quality are partially mitigated by NZKS endeavoring to source feed from multiple
suppliers (although currently both are based in Australia). To further understand supplier
performance, NZKS benchmarks feed to measure fish performance on various diets and has
invested in a trial facility that will enable feed-based trials to improve diet performance and
benchmarking.
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New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
AreaDescription of RiskKey Strategies to Mitigate
Food safetyNZKS produces ready-to-eat products which are consumed in a raw state, such as cold smoked
salmon, sushi and sashimi. There is a risk NZKS products could contain harmful bacteria or other
organisms, such as Listeria monocytogenes, which is unique in that it is a foodborne pathogen
which can grow below 4°C. Food safety incidents could result in reputational damage, regulatory
consequences (including fines, penalties, loss of licenses or temporary shutdowns of facilities),
and product recalls. The potential magnitude of any food safety incident could be severe.
In addition, new laws could also be passed which impose further food safety requirements on
NZKS, which may require significant capital expenditure to comply with, reducing NZKS
operational performance.
NZKS takes rigorous steps to minimise the risk of contamination from any biological, chemical
and physical hazards. These are managed HACCP (Hazard Analysis Critical Control Point /s)
along with support programmes and systems.
Biological hazards are managed through process controls including rigorous testing of input and
output materials. Additionally, where required, the introduction of processing aids and safe shelf-
life limits to reduce growth of pathogens such as Listeria monocytogenes.
Chemical hazards are managed through rigorous testing of inputs including fish feed and
outputs including flesh and finished products.
Physical hazards are managed through the introduction of metal detection and/or supported
by visual inspection of inputs including packaging and outputs including fish flesh and
finished products.
Social licenseNZKS has a number of external relationships and stakeholders that can influence our social
license, as its business operates in ‘public’ water space and in areas with high cultural
significance. It is crucial that NZKS maintains positive relationships with iwi and external
stakeholders, to support positive outcomes for future consent applications to continue to
operate its farms. Failure to renew some or all of these consents will have a material impact on
NZKS operations, resulting in a decline in harvest and therefore cash flow. It will also influence
our ability to expand into future locations.
NZKS undertakes a range of stakeholder engagement initiatives. These include, but are not
limited to, environmental management and active relationship and stakeholder management
(i.e. with iwi, Aquaculture New Zealand, the local council). Our communications are delivered
strategically across all groups.
The Best Aquaculture Practices (BAP) certification is the main third-party accreditation selected
to demonstrate independent assessment of the business’s operational practices based on third
party standards. NZKS ensures its compliance with BAP by engaging in regular external audits
across operations, people & culture and key suppliers to achieve four stars, the highest rating.
Loss of critical systems IT systems are needed to carry out important processes across NZKS, in all areas of the business.
This includes processes such as paying employees and suppliers, invoicing, tracking inventory
movements, taking orders and operating the call centre.
IT systems could be disrupted by several factors such as a cyber-attack, network issues, power
outage, damage to hardware. Any one of these could create a disruption that could result in the
stoppage of all of the processes that rely on IT systems.
NZKS has an in-house Information Technology team (which is also supported by specialist
technology service suppliers), one of the teams key functions is to ensure the availability of
critical business systems.
Information Technology controls include regular:
• Selecting of fit for software and technology infrastructure.
• Backups for core systems.
• Security patching.
• Technology security systems.
• Documented security policies.
• Team member training.
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New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
The Board has delegated responsibility to the Audit, Finance and Risk Committee to
establish and regularly review the Company’s risk management framework.
Business risks are a standing agenda item of the Audit, Finance and Risk Committee.
Committee specific risks are also considered by the Board committees with reports
provided by senior Management. As part of this framework the Audit, Finance and
Risk Committee is tasked with identifying situations and circumstances in which the
Company may be materially at risk and initiating appropriate action through the Board
or CEO. Risk is overseen by the CEO and supports a comprehensive approach to the
management of those risks identified as material to the Company’s operations.
The CEO and CFO have provided the Board, through the Audit, Finance and Risk
Committee, with assurances that in their opinion, financial records have been properly
maintained, that the financial statements comply with those accounting standards
under which the Company must report and that the statements give a true and fair
view of the Company’s financial position and performance. These representations are
given on the basis that a sound system of internal controls and risk management is
operating effectively in all material respects in relation to financial reporting.
In managing the Company’s business risks, the Board approves and monitors policy and
procedures in areas such as treasury management, financial performance, taxation and
delegated authorities.
Insurance
The Company has insurance policies in place covering most areas where risk to its assets
and business can be insured at a reasonable cost.
Recommendation 6.2
An issuer should disclose how it manages its health and safety risks and should report on
its health and safety risks, performance and management.
Health and Safety
The Board and Management are committed to promoting a safe and healthy working
environment for everyone working in, or interacting with, the Company. The Company
strives for continuous improvement that takes us beyond compliance in health, safety
and wellness. This includes the reviewing of our health and safety policy statement as
well as the systems and processes that support our safety objectives.
The Company’s Health & Safety and Food Safety Committee Charter creates a shared
responsibility for all our team members and contractors to, so far as reasonably
practicable take all steps in providing a working environment that promotes health and
wellbeing. Effective controls based on industry knowledge and best practice guidelines
inform and support our risk management across all areas of the business.
7. Principle 7 — Auditors
The Board should ensure the quality and independence of the external audit process.
Recommendation 7.1
The Board should establish a framework for the issuer’s relationship with its external
auditors. This should include procedures:
a. for sustaining communication with the issuer’s external auditors;
b. to ensure that the ability of the external auditors to carry out their statutory audit
role is not impaired, or could reasonably be perceived to be impaired;
85New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Recommendation 7.2
The external auditor should attend the issuer’s Annual Shareholders’ Meeting to answer
questions from shareholders in relation to the audit.
External Auditor
The Company’s Audit, Finance and Risk Committee is responsible for oversight of
the Company’s external audit arrangements to safeguard the integrity of financial
reporting. The Company maintains an External Auditor Independence Policy to ensure
that audit independence is maintained, both in fact and appearance.
The policy covers the following areas:
• Appointment of the external auditor.
• Provision of other assurance services by the external auditor.
• Pre-approval process for the provision of other assurance services.
• External auditor lead and engagement partner rotation.
• Hiring of employees from the external auditor.
• Relationships between the external auditor and the Company.
• Reporting on fees and non-audit work.
The role of the external auditor is to audit the financial statements of the Company
in accordance with applicable auditing standards in New Zealand and to report on its
findings to the Board and shareholders of the Company.
The External Auditor Independence Policy is available in the Corporate Governance Code
which is available on the Company’s website.
PricewaterhouseCoopers (PwC) is the Company’s current external auditor. Adri Smit is
the current audit engagement partner, in her first year following a change in external
audit firms at the completion of the 31 January 2024 audit. Fees paid to PwC are
included in Note 30 of the notes to the financial statements.
Both the Company’s Audit, Finance and Risk Committee Charter, and the External
Auditor Independence Policy require the external auditor to be independent, recognising
the importance of facilitating frank dialogue between the Audit, Finance and Risk
Committee, the auditor and Management. The External Auditor Independence Policy
requires that the audit partner be rotated after a maximum of five years.
The Audit, Finance and Risk Committee Charter requires the Committee to facilitate
the continuing independence of the external auditor by assessing the external auditor’s
independence, qualifications, overseeing and monitoring their performance. This involves
monitoring all aspects of the external audit, including the appointment of the auditor,
the nature and scope of its audit and reviewing the auditor’s service delivery plan.
The external auditor is invited to attend the Annual Shareholders’ Meeting and is
requested to be available to answer questions about the audit process and the
independence of the auditor.
c. to address what, if any, services (whether by type or level) other than their
statutory audit roles may be provided by the auditors to the issuer; and
d. to provide for the monitoring and approval by the issuer’s Audit Committee of an
service provided by the external auditors to the issuer other than in their statutory
audit role.
86New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Recommendation 7.3
Internal audit functions should be disclosed.
Internal Audit
The Company does not have an internal audit function. However, the Company does
have a quality and compliance team dedicated to food hygiene (in relation to the
processing of harvested fish through to finished goods that are dispatched to the
end customer) and a Health and Safety Team (dedicated to providing a safe working
environment for the Company’s operations). The objective of the food quality and
compliance team is to enhance and protect the organisational value of the Company
by providing risk-based and objective assurance. The management of Health and
Safety is overseen by regular internal safety audits throughout the Company’s
operations. Governance of these areas is provided by the Health & Safety and Food
Safety Committee.
In the absence of a dedicated internal audit function, the Company looks to utilise
external expertise for assessing the effectiveness of its risk management and internal
processes. For the year ended 31 January 2025, the Company undertook a review of its
risk appetite statements, critical risks and crisis management with a third-party expert.
Independent Professional Advice
With the approval of the Audit, Finance and Risk Committee, Directors are entitled to
seek independent professional advice on any issue related to the fulfillment of his or
her duties, at the Company’s expense. During FY25 the Directors sought independent
professional advice from:
• an external advisor to review progress against a Board review undertaken in FY23.
• an external advisor to assist with expert knowledge for the Fish Farming Committee.
8. Principle 8 — Shareholder Rights and Relations
Recommendation 8.1
An issuer should have a website where investors and interested stakeholders can access
financial and operational information and key corporate governance information about
the issuer.
Shareholder Relations
The Company is committed to maintaining a full and open dialogue with its
shareholders and other stakeholders. Annual reports, links to the NZX/ASX, governance
policies and charters, and a variety of corporate information are posted on the
Company’s website.
The Company’s preference is for electronic communications in the interests of
sustainability and efficiency; however, a paper copy of each Annual Report can be
provided to shareholders on request.
The Company’s website includes a range of information relevant to shareholders and
others concerning the operation of the Company, including information about the sites
we operate, certifications, our brands, and the corporate governance policies of the
Company.
Recommendation 8.2
An issuer should allow investors the ability to easily communicate with the issuer,
including by designing its shareholder meeting arrangements to encourage shareholder
participation, and by providing shareholders the option to receive communications from
the issuer electronically.
87New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Electronic Communications and Shareholder Meetings
Shareholders have the option of receiving their communications electronically. This is
the Company’s preferred method of communication.
Contact details for the Company’s head office are available on the website.
Shareholder meetings will be held at a time and location to encourage participation
in-person by shareholders. Annual meetings are currently held in the Nelson /
Marlborough region, reflecting the head office and production locations for the
Company.
Recommendation 8.3
Quoted equity security holders should have the right to vote on major decisions which
may change the nature of the issuer in which they are invested.
Major Decisions
Directors’ commitment to timely and balanced disclosure is set out in its Shareholder
Communications and Market Disclosure Policy and includes advising shareholders
on any major decisions. Where voting on a matter is required, the Board encourages
investors to attend the meeting or, where they are unable to do so, to cast a postal or
online vote, or appoint a proxy to exercise their vote on their behalf. Shareholders may
raise matters for discussion at the Annual Shareholders’ Meeting either in person, or
by emailing the Company with a question to be asked.
Recommendation 8.4
If seeking additional equity capital, issuers of quoted equity securities should offer
further equity securities to existing equity security holders of the same class on a pro
rata basis, and on no less favourable terms, before further equity securities are offered
to other investors.
Equity Raise
The Board is responsible for considering the interests of all existing equity holders
when assessing their capital raising options.
Recommendation 8.5
The Board should ensure that the notices of annual or special meetings of quoted
equity security holders is posted on the issuer’s website as soon as possible, and at
least 20 working days prior to the meeting.
Notice of Meeting
The Company’s Notice of Meeting will be available at least 20 working days prior to
the meeting on the NZX/ASX with a link to stock exchange announcements provided
in the Investors section of the Company’s website.
88New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Director Disclosures
The following persons were Directors of New Zealand King Salmon Investments Limited
and its subsidiaries during the period to 31 January 2025:
Directors
Mark
Dewdney
Jack
Porus
Chiong Yong
Tiong
Paul
Munro
James V.
Kilmer
Justin
Reynolds
Catriona
Macleod
Carol
Chen
Victoria Taylor
Carl
Carrington
Graeme
Tregidga
New Zealand King Salmon Investments Limited
The New Zealand King Salmon Co. Limited
New Zealand King Salmon Exports Limited
New Zealand King Salmon USA Incorporated
The New Zealand King Salmon Pty Limited
NZKS Custodian Limited
King Salmon Limited
MacCure Seafoods Limited
Omega Innovations Limited
Ōra King Limited
Regal Salmon Limited
Southern Ocean Salmon Limited
Southern Ocean Seafoods Limited
89New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Interests Register
The following entries were made in the interests register
of the Company during the year ended 31 January 2025:
Share Dealings by Directors
Dealings by Directors and key Senior Managers during
the period ended 31 January 2025, as entered in the
Interest Register of the Company are as follows:
Name of Director / Senior
Executive
No. of SharesNature of InterestAcquisition / DisposalConsiderationDate
Ben Rodgers 255,441 Beneficial Owner
Forfeiture of shares under Long
Term Incentive Scheme
$1.46 per share14 Oct 2024
Graeme Tregidga 18,324 Beneficial Owner
Forfeiture of shares under Long
Term Incentive Scheme
$1.76 per share14 Oct 2024
Grant Lovell 16,619 Beneficial Owner
Forfeiture of shares under Long
Term Incentive Scheme
$1.76 per share14 Oct 2024
Richard Smith 17,045 Beneficial Owner
Forfeiture of shares under Long
Term Incentive Scheme
$1.76 per share14 Oct 2024
Grant Rosewarne
1
3,272,437 Beneficial OwnerDisposal — Exercise of Put Option $0.2757 per share28 Feb 2024
Jack Porus 1,294,253 Beneficial OwnerAcquisition $0.2700 per share15 Apr 2024
Victoria Taylor 566 Beneficial OwnerAcquisition $0.2548 per share14 May 2024
19,334 Beneficial OwnerAcquisition $0.2512 per share14 May 2024
1
Grant Rosewarne resigned as CEO effective 1 November 2022, in connection with Grant Rosewarne’s resignation, the Company granted Mr Rosewarne a Put Option in
connection with certain long-term incentive plans for the purpose of repaying a loan owed by Mr Rosewarne to the Company in relation to the acquisition of certain shares
held by a family trust associated with Mr Rosewarne. On the 21 February 2024, Mr Rosewarne gave the Company notice to exercise the aforementioned Put Option. Pursuant
to that Put Option, NZK has acquired 3,272,437 ordinary shares on the 28 February 2024 (being 2,340,883 option shares plus an additional 931,554 shares to settle the
shortfall on the loan) the proceeds of which have been applied to the repayment of Mr Rosewarne’s loan balance. The shares acquired were subsequently cancelled on the
day of acquisition.
90New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
DirectorName of InterestNature of Interest
Mark Dewdney (Chair)
Seeka LimitedIndependent Director
Paul Munro
Electricity Ashburton LimitedDirector / Audit Chair
McKenzie Balfour & Associates Limited
(Online Distribution)
Director / Chair
Lynn River LimitedDirector
Lynn River Holdings LimitedDirector
MHV Water LimitedDirector
Mid Canterbury Water Storage LimitedDirector
Orion New Zealand LimitedDirector / Chair
Cambridge Partners LimitedDirector / Chair
Southern Eye Specialists LimitedDirector
Tait International LimitedChair
RFI Holdings LimitedDirector
R F Industries Pty LimitedDirector
Green Peak Investments LimitedDirector and Shareholder
Catriona MacleodWorld Aquaculture SocietyDirector
Entries made in the interests register for the year
ended 31 January 2025
Relevant Interests
The table below records the ordinary shares in which Directors had a relevant interest as
at 31 January 2025.
Name of Director
1
Number of Ordinary Shares -
Beneficial
Number of Ordinary Shares -
Non-Beneficial
Jack Porus
2
6,756,381 -
Victoria Taylor 83,190 -
Catriona Macleod 39,253 -
1
Neither Mark Dewdney, Chiong Yong Tiong, Paul Munro, nor Carol Chen held any relevant interests (beneficial or
non-beneficial) as at 31 January 2025.
2
An off-market share transaction between Jack Lee Porus & Robert Narev as Porus Holdings Trust and Oregon Group Ltd
(Jack Porus purchasing 1,294,253 shares for $349,448.32) completed in December 2024 was not reflected in the share
register until February 2025.
91New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Shareholder Information
As at 31 January 2025, there were 538,182,273 ordinary shares on issue in the Company,
each conferring on the registered holder the right to vote on any resolution at a meeting
of shareholders, held as follows:
Size of HoldingNumber of ShareholdersNumber of Shares held%
1 - 49919742,1030.01%
500 - 99911578,2880.01%
1,000 - 1,999230304,9360.06%
2,000 - 4,9994891,555,3830.29%
5,000 - 9,9994012,778,8540.52%
10,000 - 49,99984219,439,5963.61%
50,000 - 99,99922214,959,9672.78%
100,000 - 499,99919240,058,8447.44%
500,000 - 999,9992113,438,3462.50%
1,000,000 Over37445,525,95682.78%
Total2,746538,182,273100%
Use of Company Information by Directors
No notices were received from Directors pursuant to section 145 of the Companies Act
1993 to use Company information, received in their capacity as Directors, which would
otherwise not have been available to them.
Directors Liability
As permitted by the Company’s Constitution and in accordance with Section 162 of the
Companies Act 1993, the Company has indemnified all Directors and arranged Directors’
and Officers’ Liability Insurance which ensures that, to the extent permitted by law,
Directors will incur no monetary loss as a result of actions undertaken as Directors.
Certain actions are specifically excluded, for example, the incurring of penalties and
fines, which may be imposed in respect of breaches of the law.
92New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
20 Largest Shareholders
Set out below are details of the 20 largest shareholders of the Company as at 11 March 2025:
ShareholderShares% of Shares
Oregon Group Limited212,851,82539.55
China Resources Enterprise Limited53,125,9349.87
HSBC Nominees A/C NZ Superannuation Fund Nominees Limited - NZCSO47,812,7188.88
Accident Compensation Corporation - NZCSD18,352,4583.41
Masfen Securities Limited15,121,4682.81
New Zealand Depository Nominee Limited11,781,1402.19
Takutai Limited9,907,8271.84
Jack Lee Porus & Robert Narev6,756,3811.26
NZX WT Nominees Limited6,148,2621.14
Hsu-Cheng Yang5,600,0001.04
FNZ Custodians Limited5,407,4611.00
John William Dudley Ryder5,322,9780.99
JBWere (NZ) Nominees Limited4,510,9910.84
Custodial Services Limited3,817,7920.71
Grantley Bruce Rosewarne & Bianca Jade Rosewarne3,593,4360.67
Trew Pty Limited3,144,7150.58
NZKS Custodian Limited2,855,2460.53
Peter Plowman2,333,8080.43
Citibank Nominees (New Zealand) Limited - NZCSD2,288,9090.43
Iconic Investments Limited2,282,1860.42
93
New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Substantial Product Holders
Set out below are details of the substantial product holders of the Company as advised
by notice to the Company, as at 31 January 2025. The number of shares shown below is
as advised in the most recent substantial product holder notices given to the Company
and may not be their holding as at 31 January 2025.
ShareholderNumber of SharesClass of Share
Oregon Group Ltd
1
214,146,078Ordinary
China Resources Enterprise, Ltd53,125,934Ordinary
New Zealand Superannuation Fund Nominees Ltd47,812,718Ordinary
Annual Shareholders’ Meeting
The Company’s FY25 Annual Shareholders’ Meeting will be a hybrid meeting held on
11 June 2025. Shareholders will be given an opportunity at the meeting to ask
questions and comment on relevant matters. The Notice of Meeting will be sent to
shareholders at least 20 working days in advance of the meeting.
Exercise of NZX Disciplinary Powers
NZX Limited did not exercise any of its powers under Listing Rule 5.4.2 in relation to
the Company during the period to 31 January 2025.
Donations
Donations made by the Group during the period of 31 January 2025 totalled
$13,313.92 (31 January 2024: $3,136). No donations were made to political parties.
1
An off-market share transaction between Jack Lee Porus & Robert Narev as Porus Holdings Trust and Oregon Group Ltd
(Jack Porus purchasing 1,294,253 shares for $349,448.32) completed in December 2024 was not reflected in the share
register until February 2025.
94New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Corporate Directory
Board of Directors
Mark Dewdney
Independent Non-Executive Chair
Jack Lee Porus
Non-Executive Director
Paul Steere
Independent Non-Executive Director
(Resigned 31 March 2024)
Chiong Yong Tiong
Non-Executive Director
Catriona Macleod
Independent Non-Executive Director
Yuen Ping Carol Chen
Non-Executive Director
Victoria Taylor
Independent Non-Executive Director
Paul Munro
Independent Non-Executive Director
(Appointed 1 March 2024)
Committee Members
Audit, Finance and Risk
Committee
Paul Steere (Chair)
(Resigned 31 March 2024)
Paul Munro (Chair)
(Appointed 31 March 2024)
Jack Porus
Mark Dewdney
People and Performance
Committee
Victoria Taylor (Chair)
Jack Porus
Mark Dewdney
Health & Safety and Food
Safety Committee
Catriona Macleod (Chair)
Chiong Yong Tiong
Mark Dewdney
Fish Farming Committee
Jack Porus (Chair)
Catriona Macleod
Mark Dewdney
Lawyers
Chapman Tripp
Level 34, 15 Customs Street
West Auckland, New Zealand
Gascoigne Wicks
79 High Street
Blenheim, New Zealand
Duncan Cotterill
197 Bridge Street
Nelson, New Zealand
Tavendale and Partners
94 Nile Street
Nelson, New Zealand
Bankers
The Bank of New Zealand
Deloitte Centre
Level 6, 80 Queen Street
Auckland, New Zealand
Kiwibank
Level 9, 20 Customhouse Quay
Wellington, New Zealand
New Zealand
King Salmon
Ticker: NZK
Listed on the NZX Main Board and as
a Foreign Exempt Listing on the ASX
NZ Company number: 2161790
Registered Office
17 Bullen Street, Tahunanui
Nelson 7011, New Zealand
Postal Address
PO Box 1180 Nelson 7040
New Zealand
Telephone
+64 3 548 5714
Website
www.kingsalmon.co.nz
Investor Relations
investor@kingsalmon.co.nz
Auditor
PricewaterhouseCoopers (PwC)
Level 4, 60 Cashel Street
Christchurch, New Zealand
Share Registry
Computershare Investor Services
Limited
Level 2, 159 Hurstmere Road
Takapuna
Auckland 0622, New Zealand
+64 9 488 8700
enquiry@computershare.co.nz
Computershare Investor Services
Pty Limited
Yarra Fall
452 Johnston Street
Abbotsford VIC 3067, Australia
+61 3 9415 5000
enquiry@computershare.co.nz
95New Zealand King SalmonAnnual Report FY25 — Leadership & Corporate GovernanceContents
Financial
Statements
96New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Contents
Consolidated Statement of Comprehensive Income 98
Consolidated Statement of Financial Position 99
Consolidated Statement of Changes in Equity 100
Consolidated Statement of Cash Flows 101
Notes to the Consolidated Financial Statements 102
1. Corporate Information 102
2. Basis of Preparation 102
3. Summary of Material Accounting Policy Information 104
4. Changes to Accounting Estimates and Prior Period
Restatements 112
5. New Standards Adopted and Standards Issued
Not Yet Adopted 113
6. Other Income 114
7. Expenses 115
8. Finance Income and Costs 116
9. Income Tax 116
10. Components of Other Comprehensive Income 118
11. Earnings Per Share 118
12. Cash and Cash Equivalents 118
13. Trade and Other Receivables 119
14. Inventories 119
15. Biological Assets 120
16. Property, Plant and Equipment 122
17. Intangibles 123
18. Right-of-use Assets 124
19. Lease Liabilities 124
20. Interest Bearing Loans and Borrowings 125
21. Trade and Other Payables 125
22. Employee Liabilities 125
23. Commitments and Contingencies 125
24. Risk Management 126
25. Fair Value of Financial Instruments 130
26. Capital Management 131
27. Capital and Reserves 131
28. Events After Balance Date 132
29. Related Party Disclosures 133
30. Auditor’s Remuneration 134
31. Cash Flow Information 134
32. Revenue from Contracts with Customers 135
33. Segment Information 137
Independent Auditor’s Report 138
Glossary 143
97New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Consolidated Statement of Comprehensive Income
For the year ended 31 January 2025
20252024
Note$000$000
Restated (Note 4)
Revenue from contracts with customers32210,993187,106
Cost of goods sold7, 1 4(193,039)(173,172)
Fair value gain on biological transformation1527, 4 1 145,118
Gross profit45,36559,052
Other income65,4758,065
Selling and distribution expenses7(16,814)(15,004)
Corporate expenses7(13,796)(11,840)
Other expenses7(1,983)(868)
Profit before interest and tax18,24739,405
Finance income81,4661,051
Finance costs8(619)(396)
Profit before tax19,09440,060
Income tax expense9(5,735)(11,608)
Net profit after tax13,35928,452
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
20252024
Note$000$000
Restated (Note 4)
Other comprehensive income
Other comprehensive income that may be reclassified to
profit or loss in subsequent periods:
Exchange differences on translation of foreign operations10787(18)
Gain / (loss) on cash flow hedges10(9,739)(6,055)
Income tax effect on gain / (loss) on cash flow hedges102,7261,695
Hedging gain / (loss) reclassified to profit & loss103,5364,690
Income tax effect on reclassifications to profit & loss10(957)(1,320)
Release of early closed out foreign exchange contracts10(4,330)(6,728)
Deferred tax on early closed out foreign exchange contracts101,2141,884
Net other comprehensive income / (loss)(6,763)(5,852)
Total comprehensive income / (loss)6,59622,600
Earnings per share
Basic earnings per share11 $0.02 $0.05
Diluted earnings per share11 $0.02 $0.05
98
New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Consolidated Statement of Financial Position
As at 31 January 2025
20252024
AssetsNote$000$000
Current assetsRestated (Note 4)
Cash and cash equivalents1249,738 20,908
Trade and other receivables1317,262 18,427
Other current financial assets253,000 6,000
Inventories1427,190 37,059
Biological assets1588,145 94,460
Derivative financial assets251,016 976
Total current assets186,351 177,830
Non-current assets
Property, plant and equipment1652,427 48,335
Derivative financial assets25540 2,829
Intangible assets172,775 3,282
Right-of-use assets1810,103 6,669
Total non-current assets65,845 61,115
Total Assets252,196 238,945
Director - Mark Dewdney
27 March 2025
Director - Paul Munro
27 March 2025
20252024
LiabilitiesNote$000$000
Current LiabilitiesRestated (Note 4)
Trade and other payables2113,456 16,071
Employee liabilities224,838 4,439
Borrowings204,505 3,417
Lease liabilities191,834 1,028
Other financial liabilities29340 288
Derivative financial liabilities257,153 3,639
Taxation payable4,426 732
Total current liabilities36,552 29,614
Non-current liabilities
Employee liabilities22326 472
Borrowings20- 2,000
Lease liabilities198,647 5,872
Deferred tax liabilities96,134 7, 74 1
Derivative financial liabilities253,506 2,951
Total non-current liabilities18,613 19,036
Total liabilities55,165 48,650
Net assets197,031 190,295
Equity
Share capital27180,143 180,143
Reserves27(5,263) 1,360
Retained earnings2722,151 8,792
Total equity197,031 190,295
The consolidated statement of financial position should be read in conjunction with the accompanying notes.
For and on behalf of the Board, who authorised the issue of these financial statements on 27 March 2025.
99New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Consolidated Statement of Changes in Equity
For the year ended 31 January 2025
Share
Capital
Foreign
Currency
Translation
Reserve
Hedge
Reserve
Share Based
Payment
Reserve
Retained
Earnings
Total
Equity
Note$000$000$000$000$000$000
Balance as at 1 February 2023180,143(614)7, 2 0 9828(19,660)167,906
Profit for the year----28,452 28,452
Other comprehensive income/(loss)10-(18)(5,834)--(5,852)
Total comprehensive income/(loss) for the year-(18)(5,834)-28,452 22,600
Share based payment expense/(credit)---(211)-(211)
Balance as at 31 January 2024180,143 (632) 1,375 617 8,792 190,295
Balance as at 1 February 2024180,143 (632)1,3756178,792190,295
Profit for the year- - - - 13,359 13,359
Other comprehensive income/(loss)10- 787 (7,550) - - (6,763)
Total comprehensive income/(loss) for the year- 787 (7,550) - 13,359 6,596
Share based payment expense/(credit)- - - 140 - 140
Balance as at 31 January 2025180,143 155 (6,175) 757 22,151 197,031
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
100New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Consolidated Statement of Cash Flows
For the year ended 31 January 2025
20252024
Note$000$000
Operating Activities
Receipts from customers213,099 187,578
Payments to suppliers(130,289) (133,294)
Payments to employees(44,701) (42,001)
Interest received1,421 1,051
Interest paid(578) (308)
Insurance and settlement income- 103
Government grants received86 99
Income tax paid(580) (15)
Net cash flows from / (used in) operating activities3138,45813,213
Investing activities
Placement / (Maturity) of short term deposits3,000 (6,000)
Proceeds from sale of property, plant and equipment17 38
Purchase of property, plant and equipment(10,743) (6,049)
Purchase of intangible assets- (257)
Net cash flow (used in) / from investing activities(7,726) (12,268)
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
20252024
Note$000$000
Financing activities
Repayment of borrowings(4,417) (1,893)
Proceeds from borrowings3,505 3,811
Payment of lease liabilities(1,580) (1,264)
Net cash flows (used in) / from financing activities(2,492) 654
Net increase/(decrease) in cash and cash equivalents28,240 1,599
Net foreign exchange difference590 88
Cash and cash equivalents at beginning of the year1220,908 19,221
Cash and cash equivalents at year end1249,738 20,908
101
New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Notes to the Consolidated Financial Statements
For the year ended 31 January 2025
1. Corporate Information
The consolidated financial statements of New Zealand King Salmon Investments Limited
(the Company) and its subsidiaries (together the Group) for the year ended 31 January
2025 were authorised by the Directors on 27 March 2025.
New Zealand King Salmon Investments Limited is a profit-oriented company
incorporated and domiciled in New Zealand, registered under the Companies Act 1993.
The Company is dual listed with its primary listing of ordinary shares quoted in New
Zealand on the NZX Main Board (“NZX”), and a secondary listing in Australia as a
foreign Exempt Entity on the Australian securities exchange (“ASX”). The Company is an
FMC reporting entity under the Financial Markets Conduct Act 2013.
The Group is principally engaged in the farming, processing, sale and distribution of
premium salmon products.
2. Basis of Preparation
a. Statement of compliance
The consolidated financial statements of the Group comply with New Zealand
Equivalents to International Financial Reporting Standards (NZ IFRS) and other
applicable Financial Reporting Standards, as applicable for profit oriented entities. The
consolidated financial statements of the Group comply with International Financial
Reporting Standards (IFRS Accounting Standards).
The financial statements have been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand (NZ GAAP) and the requirements of the Financial
Markets Conduct Act 2013. For the purposes of complying with NZ GAAP the Group is a
for-profit entity.
Certain comparative figures have been reclassified during the year for consistency with
the current year presentation. These classifications had no effect on the reported results
of operations.
b. Basis of measurement
The financial statements have been prepared on a historical cost basis except for
biological assets and certain financial instruments which have been measured at fair
value. The carrying values of recognised assets and liabilities that are designated as
hedged items in hedging instruments are adjusted to recognise changes in the fair
values attributable to the risks that are being hedged in effective hedge relationships.
The consolidated financial statements are presented in New Zealand dollars and all
values are rounded to the nearest thousand ($000), except when otherwise indicated.
c. Significant accounting judgements, estimates and assumptions
The preparation of the Group’s consolidated financial statements requires management
to make judgements, estimates and assumptions that affect the reported outcomes
of revenues, expenses, assets, liabilities and the accompanying disclosures. The Group
based its assumptions and estimates on parameters available when the consolidated
financial statements were prepared. Uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.
Specific areas requiring significant estimates and judgements include:
102New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Valuation of biological assets
The Group measures biological assets at fair value less costs to sell, in accordance
with NZ IAS 41. The fair value is measured using a discounted cash flow model and is
categorised at Level 3 in the fair value hierarchy in NZ IFRS 13, as the input is mostly
unobservable. In line with NZ IFRS 13, the highest and best use of the biological assets
is applied for the valuation. The model relies on various assumptions and information
available at balance date. The income or loss that is ultimately recognised at time of
sale may be significantly different from that implied by the fair value adjustment at the
end of a reporting period. The fair value uplift from accumulated costs to date has no
cash impact in the reporting period. Further details of the key assumptions and inputs
to the valuation and sensitivity to change in these are disclosed in Note 15.
Inventory (finished goods and work in progress) obsolescence
Inventories are stated at the lower of cost or net realisable value, and the Group uses
judgment and estimates to determine the net realisable value of inventory at the end of
each reporting period.
The Group estimates the net realisable value of inventory for obsolescence and
unmarketable items at the end of reporting period and then writes down the cost of
inventories to net realisable value. The net realisable value of the inventory is determined
based on assumptions of future demand and pricing and estimates over the remaining
shelf life of the inventory.
Valuation of financial derivatives
The Group recognises financial derivatives at fair value according to the principles of
NZ IFRS 13 Fair Value Measurement. The value is calculated by a third party expert using
an industry standard model. Inputs to the model are obtained externally by the service
provider and the derivative counterparty. Further details of the valuation are included in
Note 25.
d. Foreign currency translation
Functional and presentation currency
The Group’s consolidated financial statements are presented in New Zealand dollars,
which is also the parent company’s functional currency. The Australian subsidiary’s
functional currency is Australian dollars which is translated into the presentation
currency in these consolidated financial statements. The USA subsidiary’s functional
currency is United States dollars which is translated into the presentation currency in
these consolidated financial statements.
Transactions and balances
Transactions in foreign currencies are initially recorded in the functional currency and
then translated by applying the exchange rates ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are retranslated at the
rate of exchange at balance date.
Differences arising on settlement or translation of monetary items are recognised in
profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency
are translated using the exchange rate as at the date of the initial transaction. Non-
monetary items measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was determined.
103New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
3. Summary of Material Accounting Policy Information
a. Basis of consolidation
The financial statements comprise the financial statements of New Zealand King
Salmon Investments Limited and its subsidiaries (per Note 29). Subsidiaries are all those
entities over which the Company has control.
The financial statements of the subsidiaries are prepared for the same reporting period
as the Parent company using consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and
transactions, income and expenses and profit and losses resulting from intra-group
transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is obtained by the
Group and cease to be consolidated from the date on which control is transferred out of
the Group.
b. Financial instruments
Financial assets are classified, at initial recognition, as subsequently measured at
amortised cost, fair value through other comprehensive income (OCI), and fair
value through profit or loss. The classification of financial assets depends on the
business model within which the financial asset is held and its contractual cash
flow characteristics. In order for a financial asset to be classified and measured at
amortised cost or fair value through OCI, it needs to give rise to cash flows that are
‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding.
This assessment is referred to as the SPPI test and is performed at an instrument level.
Financial assets with cash flows that are not SPPI are classified and measured at fair
value through profit or loss, irrespective of the business model. Subsequently the Group
applies the following accounting policies for financial instruments:
Cash and cash equivalents
Cash and cash equivalents in the consolidated statement of financial position comprise
cash at bank and call deposits. For the purpose of the cash flows, cash and cash
equivalents consist of cash and short-term deposits net of outstanding bank overdrafts.
Trade and other receivables
Short term trade and other receivables are recognised when an amount of consideration
that is unconditional, is due from the customer (i.e. only the passage of time is required
before the payment of the consideration is due). Gains and losses are recognised in the
profit or loss when the receivables are written off or impaired.
For trade receivables and contract assets, the Group applies a simplified approach in
calculating an allowance for expected credit loss (ECL). Therefore, the Group does not
track changes in credit risk, but instead recognises a loss allowance based on lifetime
ECL’s at each reporting date. The Group has established a provision matrix that is based
on its historical credit loss experience, adjusted for forward-looking factors specific to
the debtors and the economic environment.
Trade and other payables
Trade and other payables are carried at amortised cost and, due to their short term
nature, are not discounted. They represent liabilities for goods and services provided
to the Group prior to the end of the financial year that are unpaid, and arise when the
Group becomes obliged to make future payments in respect of the purchase of these
goods and services. The amounts are unsecured and are usually paid within 30-90 days
of recognition.
104New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Interest bearing borrowings
After initial recognition interest bearing borrowings are subsequently measured at
amortised cost using the effective interest method. Fees paid on establishment of loan
facilities that are yield related are included as part of the carrying amount. Borrowings
are classified as current liabilities unless the Group has the right to defer settlement
of the liability for at least 12 months after the balance date. Borrowing costs are
generally recognised as an expense when incurred, with the exception of borrowing
costs associated with a qualifying asset which are capitalised as part of the cost of
that asset.
Derivative financial instruments and hedging
The Group uses derivative financial instruments including forward currency contracts,
options and interest rate swaps to hedge risks associated with interest rate and foreign
currency fluctuations. Such derivative financial instruments are initially recognised
at fair value on the date on which a derivative contract is entered into and are
subsequently re-measured to fair value at balance date. Derivatives are carried as
assets when their fair value is positive and as liabilities when their fair value is negative.
The fair values of forward currency contracts and options are calculated by reference
to current forward exchange rates for contracts with similar maturity profiles. The
fair values of interest rate swaps are determined by reference to market values for
similar instruments.
The Group designates its derivative financial instruments as hedges of a particular risk
associated with a recognised asset or liability or a highly probable commitment that
could affect profit or loss (cash flow hedges). The effective portion of the gain or loss
on the hedging instrument is recognised directly in other comprehensive income in the
cash flow hedge reserve, while the ineffective portion is recognised immediately in profit
or loss. Derivatives that are designated as hedges will be classified as non-current if they
have maturities of greater than 12 months after balance date.
Some components of hedge accounted derivatives are excluded from the designated
risk. Cash flow hedges include only the intrinsic value of forward currency contracts and
options. Time value on options is excluded from the hedge designation and is marked
to market through other comprehensive income and accumulated within a separate
component of equity (‘the costs of hedging reserve’ within ‘hedge reserves’) until such
time as the related hedge accounted cash flows affect profit or loss. At this stage the
cumulative amount is reclassified to profit or loss.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group
of similar financial assets) is primarily derecognised (i.e. removed from the Group’s
consolidated statement of financial position) when:
• The rights to receive cash flows from the asset have expired; Or
• The Group has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material delay
to a third party under a “pass-through” arrangement; and either (a) the Group has
transferred substantially all the risks and rewards of the asset, or (b) the Group has
neither transferred nor retained substantially all the risks and rewards of the asset,
but has transferred control of the asset. When the Group has transferred its rights to
receive cash flows from an asset or has entered into a pass-through arrangement, it
evaluates if, and to what extent, it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards
105New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
of the asset, nor transferred control of the asset, the Group continues to recognise
the transferred asset to the extent of its continuing involvement. In that case, the
Group also recognises an associated liability. The transferred asset and the associated
liability are measured on a basis that reflects the rights and obligations that the
Group has retained. Continuing involvement that takes the form of a guarantee over
the transferred asset is measured at the lower of the original carrying amount of the
asset and the maximum amount of consideration that the Group could be required
to repay.
c. Inventories
Inventories including raw materials, work in progress and finished goods are valued at
the lower of cost or net realisable value. Costs incurred in bringing each product to its
present location and condition are accounted for as follows:
Raw materials
The cost of fish is measured at fair value less cost to sell at harvest date. The cost of
feed and packing materials is based on the purchase price including import duties and
other taxes, transport, handling and other costs directly attributable to the acquisition
of the goods and materials. Costs are determined on a standard cost basis.
Manufactured finished goods and work in progress
Cost of direct materials, labour and a proportion of manufacturing overheads
appropriate to the stage of manufacture. Costs are assigned on the basis of standard
cost. The cost of items transferred from biological assets is at their fair value less costs
to sell at the point of harvest.
Net realisable value
The estimated selling price in the ordinary course of business less estimated costs of
completion and the estimated costs necessary to make the sale.
d. Biological assets
Biological assets are recognised in the consolidated statement of financial position
at their fair value less cost to sell. The net gain or loss resulting from the fair value
measurement is recognised in the consolidated statement of comprehensive income.
The fair value of fish livestock is derived from the amount expected to be received
from the sale of the asset in an active market. The costs associated with growing the
fish (e.g. feed and labour costs) are directly capitalised to biological assets.
The fish are divided into two main groups, depending on the stage of the life
cycle. At the earliest stage of the life cycle, the fish are kept on land in freshwater
facilities. This encompasses roe, fry and smolt. When the fish are large enough to be
transferred to the sea, they are classified as biomass in sea. Fish onshore (smolt) are
recognised at accumulated cost, which is considered the best estimate of fair value
because of very little biological transformation. This assessment must be seen in the
light of the fact that smolt are currently transferred to the sea at a stage when their
weight is still relatively low. For fish in sea, the fair value is calculated by applying a
cash-flow based present value model. Fish stock is transferred to inventory at the
time of harvest. The transfer is recorded at its fair value less cost to sell at the point
of harvest which is deemed to be cost for the purposes of inventory valuation.
When estimating the fair value of the fish, a cash flow model is applied. The cash-
flow based present value model for estimating the fair value less cost to sell includes
all directly attributable cash inflows and outflows. In a hypothetical market with
106New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
perfect competition, a hypothetical buyer of live fish would be willing to pay the present
value of the estimated future profit from the sale of the fish when it is ready for harvest.
No deductions are made for sales expenses, as these are not observable in the market.
Such expenses are also deemed immaterial. The cash flow is discounted monthly by a
discount rate.
e. Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated
depreciation and impairment. Depreciation is provided on a straight line basis over the
estimated useful lives of the assets as follows:
Freehold landnot depreciated
Freehold buildingstwenty to fifty years
Building fit outthree to twenty five years
Leasehold improvementsfive to eighteen years
Plant, furniture and fittingsthree to twenty years
Motor vehiclesfive to ten years
Sea vesselsten to thirty years
The residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively if
appropriate. An asset’s carrying value is written down immediately to its recoverable
amount if its carrying value is greater than its estimated recoverable amount.
An item of property, plant and equipment is derecognised upon disposal or when no
further future economic benefits are expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in profit or loss in
the year the asset is derecognised.
f. Group as a lessee
At the inception of a contract, the Group is required to assess whether a contract
contains a lease. A contract contains a lease if the contract conveys the right to control
the use of an identified asset for a period in exchange for consideration.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e.
the date the underlying asset is available for use). Right-of-use assets are measured at
cost, less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities recognised, initial
direct costs incurred, and lease payments made at or before the commencement date
less any lease incentives received. Right-of-use assets are depreciated on a straight-line
basis over the shorter of the lease term and the estimated useful lives of the assets.
The Group’s lease portfolio
Property leases
The Group’s real estate includes office buildings and storage facilities. The Group has
recognised some storage contracts that meet the identifiable criteria as a right-of-use
asset and corresponding liability portfolio under NZ IFRS 16.
Vehicle leases
The Group leases vehicles, which are predominantly used by sales staff and the
transportation of personnel between operating locations. These vehicles are generally
held for a term of four years.
107New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Plant and equipment leases
The Group leases equipment used for the production or processing of salmon. The
current leases relate to equipment such as compressors, generators and forklifts
operated throughout the group. The Group has elected to apply the recognition
exemption for short-term leases for all other machinery employed for less than 12
months duration and for leases where the underlying asset is of low value.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured
at the present value of lease payments to be made over the lease term. The lease
payments include fixed payments (including in-substance fixed payments) less any
lease incentives receivable, variable lease payments that depend on an index or a rate,
and amounts expected to be paid under residual value guarantees.
Short-term leases and leases of low-value assets
The Group applies short term lease recognition exemption to its short term leases of
equipment. It also applies the lease of low-value assets recognition exemption to leases
of equipment that are considered to be low value. Lease payments on short term leases
and leases of low-value assets are recognised as an expense on a straight-line basis over
the lease.
g. Impairment of non financial assets
The Group assesses, at each reporting date, whether there is an indication that an
asset may be impaired. If any indication exists, or when annual impairment testing for
an asset is required, the Group estimates the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal
and its value in use. The recoverable amount is determined for an individual asset, unless
the asset does not generate cash inflows that are largely independent of those from
other assets or groups of assets. When the carrying amount of an asset or CGU exceeds
its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount.
h. Intangibles
Intangible assets acquired separately or in a business combination are initially measured
at cost. The cost of an intangible asset acquired in a business combination is its fair value
as at the date of acquisition. Following initial recognition, intangible assets are carried at
cost less any accumulated amortisation and any accumulated impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite.
Intangible assets with finite lives are amortised over the useful life and tested for
impairment whenever there is an indication that the intangible asset may be impaired.
The amortisation period and the amortisation method for an intangible asset with
a finite useful life is reviewed at least at each financial year end. Changes in the
expected useful life or the expected pattern of consumption of future economic benefits
embodied in the asset are accounted for prospectively by changing the amortisation
period or method, as appropriate, which is a change in accounting estimate. The
amortisation expense on intangible assets with finite lives is recognised in profit or loss in
the expense category consistent with the function of the intangible asset.
Intangible assets with indefinite useful lives or not yet available for use are not
amortised but are tested for impairment annually, either individually or at the cash-
generating unit level. The assessment of useful life is reviewed annually to determine
whether the indefinite life continues to be supportable. If not, the change in useful life
from indefinite to definite is made on a prospective basis.
108New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Trade marks
Useful lives: Indefinite
Internally generated or acquired:Acquired
Intellectual property, marine farm and hatchery licences
and marina berth
Useful lives: Finite
Amortisation method used:Straight line, five to thirty five years
Internally generated or acquired:Acquired
Computer Software
Useful lives: Finite
Amortisation method used:Straight line, four to seven years
Internally generated or acquired:Acquired
A summary of the policies applied to the Group’s intangible assets is as follows:i. Research and development costs
Research costs are expensed as incurred. Development expenditures are capitalised as
intangible assets when the Group can demonstrate:
• Costs can be reliably measured.
• Completion of the project is technically feasible.
• Resources are available to complete the project.
• There is an intention to use the resulting asset and it will generate future
economic benefits.
During the period of development the asset is tested for impairment annually.
j. Employee benefits
Wages, salaries and annual leave
Liabilities for wages and salaries including non-monetary benefits and annual leave
expected to be settled within 12 months of the reporting date are recognised in respect of
employees’ services up to the reporting date. They are measured at the amounts expected
to be paid when the liabilities are settled. Liabilities for accumulating annual leave are
recognised when the leave is taken and are measured at the rates paid or payable.
Long service leave
The liability for long service leave is recognised and measured at the present value of
expected future payments to be made in respect of services provided by employees up
to the reporting date using the projected unit credit method. Consideration is given to
expected future wage and salary levels, experience of employee departures and periods
of service.
109New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Defined contribution plans
Contributions made to a defined contribution plan are expensed as incurred.
k. Contributed equity
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the
issue of new shares or options are shown in equity as a deduction net of tax from the
proceeds. Other capital raising costs are expensed as incurred.
l. Revenue and income recognition
Revenue from contracts with customers
The Group is in the business of growing, processing, selling and distributing King
salmon to customers in New Zealand and overseas. Revenue from contracts with
customers is recognised when control of the goods is transferred to the customer at
the amount that reflects the consideration to which the Group expects to be entitled
in exchange for those goods. The Group has generally concluded that it is the principal
in its revenue arrangements because it typically controls the goods before transferring
them to the customer.
Interest income
Income is recognised as interest accrues using the effective interest method.
Insurance proceeds
Insurance proceeds are recognised in the financial statements when receipt is virtually
certain and can be measured reliably.
m. Taxes
Income taxes
Current tax assets and liabilities for the current and prior periods are measured at the
amount expected to be recovered from or paid to the taxation authorities based on
the current period’s taxable income. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at the balance date
between the tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes.
The carrying amount of deferred income tax assets is reviewed at each balance date
and reduced to the extent that it is no longer probable that sufficient taxable profit
will be available to allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and
are recognised to the extent that it has become probable that future taxable profit
will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are
expected to apply to the year when the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted or substantively enacted at the
balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity
and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable
right exists to set off current tax assets against current tax liabilities and the
deferred tax assets and liabilities relate to the same taxable entity and the same
taxation authority.
110New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST, except when:
• The GST incurred on a purchase of goods and services is not recoverable from
the taxation authority, in which case the GST is recognised as part of the cost of
acquisition of the asset or as part of the expense item as applicable.
• Receivables and payables, which are stated with the amount of GST included.
• The net amount of GST recoverable from or payable to the taxation authority is
included as part of receivables or payables in the consolidated statement of
financial position.
• Commitments and contingencies are disclosed net of the amount of GST recoverable
from or payable to the taxation authority.
• The Group recognises uncertain tax positions as a liability where it is probable that an
outflow of resources will be required.
n. Share-based payments
Certain employees of the Group receive remuneration in the form of share-based
payments, whereby employees render services as consideration for equity instruments
(equity-settled transactions). The cost of equity-settled transactions is determined by
the fair value at the date when the grant is made using an appropriate valuation model.
That cost is recognised in employee benefits expense, together with a corresponding
increase in equity (share-based payment reserve), over the period in which the service
and, where applicable, the performance conditions are fulfilled (the vesting period). The
cumulative expense recognised for equity-settled transactions at each reporting date
until the vesting date reflects the extent to which the vesting period has expired and the
Group’s best estimate of the number of equity instruments that will ultimately vest. The
expense or credit in the consolidated statement of comprehensive income for the period
represents the movement in cumulative expense recognised as at the beginning and
end of that period.
Service and non-market performance conditions are not taken into account when
determining the grant date fair value of awards, but the likelihood of the conditions
being met is assessed as part of the Group’s best estimate of the number of equity
instruments that will ultimately vest. Market performance conditions are reflected within
the grant date fair value. Any other conditions attached to an award, but without an
associated service requirement, are considered to be non-vesting conditions. Non-
vesting conditions are reflected in the fair value of an award and lead to an immediate
expense of an award unless there are also service and/or performance conditions.
No expense is recognised for awards that do not ultimately vest because non-market
performance and/or service conditions have not been met. Where awards include a
market or non-vesting condition, the transactions are treated as vested irrespective
of whether the market or non-vesting condition is satisfied, provided that all other
performance and/or service conditions are satisfied.
When the terms of an equity-settled award are modified, the minimum expense
recognised is the grant date fair value of the unmodified award, provided the original
terms of the award are met. An additional expense, measured as at the date of
modification, is recognised for any modification that increases the total fair value of the
share-based payment transaction, or is otherwise beneficial to the employee. Where an
award is cancelled by the entity or by the counterparty, any remaining element of the
fair value of the award is expensed immediately through profit or loss.
111New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
a. Change in Accounting Estimate
During the year, the Group adopted a new valuation technique for the fair value less
costs to sell of biological assets which has been determined as a change in accounting
estimate in accordance with NZ IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors and accounted for prospectively.
The new valuation technique uses a discounted cash flow model to determine the fair
value of the fish at sea and due to the nature of the biological assets was considered a
more generally accepted valuation technique based on industry practice. Refer to Note
15 for further details around the key assumptions and judgements made in determining
the fair value.
b. Prior Period Restatements
Restatement of current/non-current classification of biological assets
Whilst considering the current and non-current split of biological assets under the
discounted cash flow model, management determined that due to the nature of the
biological asset, which is realised in the normal operating cycle of the business, it would
be more appropriate to disclose the full biological asset as a current asset. The prior year
consolidated statement of financial position was restated to correct the classification
as current. This resulted in a decrease in non-current assets of $12.0m and increase in
current assets of $12.0m in the prior period.
Restatement of statement of comprehensive income classifications to report expenses
by function
The prior period consolidated statement of comprehensive income was presented as
a mixture of nature and function of expenses. This has been restated in the current
year to disclose expenses by function only. The key changes to the presentation in the
consolidated statement of comprehensive income are:
• Combining ‘Sales, marketing and advertising expenses’ and ‘Distribution expenses’
into the line item ‘Selling and distribution expenses’
• Combining ‘Freight costs to market’ to ‘Cost of goods sold’
• Reclassification of depreciation and amortisation expenses to their appropriate
function
Using the current period’s basis for allocation, an estimate was made to determine the
following changes to reclassify the prior period line items. The prior period was restated
to increase the cost of goods sold by $27.2 million, decrease freight costs to market by
$20.8 million, increase selling and distribution costs by $3.6 million, decrease distribution
overheads by $3.5 million, increase corporate expenses by $1.1 million and decrease
depreciation and amortisation by $7.6 million.
This restatement had no impact on profit before tax or the earnings per share
calculation for the year ended 31 January 2024.
4. Changes to Accounting Estimates and Prior Period Restatements
112New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
20242024
Note 15
Biological assets
$000$000
Restated
As at 1 February 202372,69272,692
Increase due to biological transformation85,949145,546
Decrease due to harvest(66,510)(121,840)
Decrease due to mortality(12,628)(12,628)
Changes in fair value14,95710,690
As at 31 January 202494,46094,460
Restatement of fair value movements on biological assets
Although the previous valuation technique determined a fair value materially in line
with the new valuation technique adopted (discounted cash flow) the calculations
associated with splitting the fair value gains /losses arising from biological
transformation, the harvested fair value and the overall movement in the fair value was
incorrect. The error did not impact on net profit for the year however the split within the
note and disclosure on the face of the consolidated statement of comprehensive income
between cost of goods sold and the fair value movement on biological transformation
was materially different. The prior period was restated to decrease the cost of goods sold
by $25.2 million and decrease the fair value gain on biological asset transformation by
$25.2 million.
a. New and Revised Standards Adopted
During the year, the Group has adopted several new and revised standards and
interpretations issued by the External Reporting Board (XRB) and the New Zealand
Accounting Standards Board (NZASB) that are relevant to its operations and effective
for annual reporting periods beginning on or after 1 January 2024. The adoption of these
standards and interpretations has not resulted in significant changes to the Group’s
accounting policies.
FRS-44: New Zealand Additional Disclosures
As part of the Group’s financial reporting practices, FRS-44: New Zealand Additional
Disclosures has been applied. FRS-44 sets out the New Zealand-specific disclosure
requirements exceeding the IFRS requirements. These additional disclosures include
but are not limited to, information about dividends, imputation credits, and audit
fees. The application of FRS-44 has not had a material impact on the measurement of
figures reported, but it does enhance the presentation and disclosure in the financial
statements to ensure compliance with New Zealand-specific requirements.
IFRIC Agenda Decision on Segment Reporting
In October 2024, the IFRIC issued an agenda decision regarding the application of IFRS
8 “Operating Segments”. The agenda decision provides clarifications on identifying the
Chief Operating Decision Maker (CODM) and considerations for aggregated segment
disclosures. While this agenda decision did not lead to a change in our segment
reporting, it reinforced the importance of ensuring that disclosed segments align with
the internal reporting reviewed by the CODM. The Group continues to reflect its internal
management structure and the nature of financial information reported internally
to the CODM within its segment disclosures. These policies are consistent with the
principles outlined in IFRS 8.
5. New Standards Adopted and Standards Issued Not Yet Adopted
113New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
20252024
Other income$000$000
Grants received 86 99
Profit on sale of property, plant and equipment- 25
Release of early closed out foreign exchange contracts from OCI4,330 6,728
Foreign exchange gains / (losses)226 -
Other income833 1,213
Total other income5,475 8,065
6. Other Income
No other new standards, amendments or interpretations that have been issued and
are effective have had a significant impact on the Group in the current consolidated
financial statements.
b. New Standards Issued Not Yet Adopted
In April 2024, the IASB issued IFRS 18 - Presentation and Disclosure in Financial
Statements to improve reporting of financial performance. IFRS 18 replaces IAS 1
Presentation of Financial Statements. It carries forward many requirements from IAS
1 and introduces increased disclosure of management defined performance measures
as well as new principles for aggregation and disaggregation of information included
in the consolidated statement of comprehensive income. IFRS 18 is applicable to the
Group beginning on 1 February 2027. The Group is currently evaluating the impact of the
adoption of IFRS 18 on its consolidated financial statements.
114New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Note20252024
Depreciation and amortisation$000$000
Included in cost of goods sold
Depreciation5,592 5,579
Amortisation of intangibles136 143
Amortisation of leases1,106 604
Included in selling and distribution expenses
Depreciation133 128
Amortisation of intangibles19 23
Amortisation of leases- -
Included in corporate expenses
Depreciation279 148
Amortisation of intangibles258 262
Amortisation of leases614 698
Total depreciation and amortisation16, 17, 188,137 7,585
20252024
Compensation of key management personnel of the Group$000$000
Short-term employee benefits 3,199 2,747
Post-employment benefits and medical benefits139 107
Share based payment expense128 26
Total compensation of key management personnel of the Group3,466 2,880
20252024
Other expenses include:$000$000
Reversal of impairment- (61)
Research costs611 323
Net loss on sale of assets 64 -
Directors' fees681 599
Other directors' expenses4 4
Donations13 3
20252024
Employee benefits expenses$000$000
Included in cost of goods sold
Wages and salaries26,785 24,474
Defined contribution plan expenses725 649
Other employee benefits expenses2,2662,357
Outsourced labour1,159 1,517
Included in selling and distribution expenses
Wages and salaries7, 393 6,853
Defined contribution plan expenses171 153
Other employee benefits expenses377 381
Outsourced labour978 1,091
Included in corporate expenses
Wages and salaries4,912 4,359
Defined contribution plan expenses145 121
Other employee benefits expenses494 472
Outsourced labour121 15
Total employee benefits expense45,526 42,442
7. Expenses
115New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
20252024
Reconciliation of tax expense to statutory income tax rate$000$000
Profit / (loss) before tax19,094 40,060
Income tax using the company tax rate 28%5,346 11,217
Non deductible / (non assessable) items(2) 41
Prior period adjustment(111) 444
Adjustment for varying tax rates(138) (124)
Impact of removal of deferred tax on buildings640 -
Other differences- 30
Total tax expense / (credit)5,735 11,608
Consolidated statement of financial position deferred tax assets
and liabilities20252024
Deferred tax liabilities $000$000
Fair value adjustment to biological assets(11,127) (12,536)
Unrealised gains on foreign currency hedges(436) (1,065)
Accounting cost adjustment for finished goods(333) (880)
Right-of-use assets(2,820) (1,868)
Total deferred tax liabilities(14,716) (16,349)
Deferred tax assets
Accelerated depreciation for tax purposes 1,280 2,041
Lease liabilities2,925 1,932
Provision for doubtful trade debtors89 1
Provision for employee benefits1,014 752
Tax losses- 1,607
Unrealised losses on foreign currency hedges2,984 1,845
Other provisions290 430
Total deferred tax assets8,582 8,608
Net deferred tax assets / (liabilities)(6,134) (7,741)
8. Finance Income and Costs
9. Income Tax
20252024
Finance income$000$000
Interest income 1,466 1,051
Total finance income1,4661,051
Finance costs$000$000
Bank facility fees3987
Interest on bank loans and overdrafts143 98
Interest on leases437 211
Total finance costs619 396
20252024
Recognised in the consolidated statement of
comprehensive income$000$000
Current income tax expense4,359 894
Deferred tax relating to origination and reversal of
temporary differences
1,376 10,714
Total income tax expense / (credit) in the statement of
comprehensive income
5,735 11,608
Deferred tax (expense) / credit posted directly to other
comprehensive income
(2,983) (2,259)
Tax expense / (credit) posted directly to equity- 205
116
New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Movement of deferred tax assets and liabilities20252024
Deferred tax liabilities $000$000
Fair value adjustment to biological assets(1,409) 3,904
Unrealised gains on foreign currency hedges(629) (619)
Increase accounting cost for finished goods(547) 811
Right-of-use assets952 660
(1,633) 4,756
Deferred tax assets
Accelerated depreciation for tax purposes 761 286
Lease liabilities(993) (667)
Provision for doubtful trade debtors(88) 17
Provision for employee benefits(262) (60)
Tax losses1,607 3,743
Unrealised gains / (losses) on foreign currency hedges(1,139) 243
Other provisions140 137
26 3,699
Total deferred tax movement(1,607) 8,455
Comprising
Deferred Tax movement through the consolidated statement of
comprehensive income
1,376 10,714
Deferred Tax movement through other comprehensive income(2,983) (2,259)
Income tax expense reported in the statement of profit or loss(1,607) 8,455
Imputation credit account
The imputation credit account balance in the Group as at 31 January 2025 is $14,250k
(31 January 2024: $10,545k).
Impact of removal of deferred tax on buildings
In March 2024, the New Zealand Government enacted the Taxation (Annual Rates for
2023-24, Multinational Tax and Remedial Matters) Bill. As a result, from the 2024-25
income tax year onwards, the Group can no longer claim any tax depreciation on their
buildings with estimated useful lives of 50 years or more in New Zealand. The Group
assessed the accounting impact of this change, which resulted in a decreased deferred
tax asset recognised on property, plant and equipment.
117New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
In FY21 and FY22, in the money foreign exchange contracts were closed out early
and recognised in the hedge reserve. As the foreign currency contracts come to their
original term date they have been recognised in other comprehensive income along
with the tax impact.
11. Earnings Per Share
Basic earnings per share amounts are calculated by dividing the profit for the period
attributable to shareholders of the Company by the weighted average number of
ordinary shares on issue during the period. Diluted earnings per share are calculated by
dividing the profit attributable to shareholders of the Company by the weighted average
number of ordinary shares outstanding during the year plus the weighted average
number of shares that would be issued on conversion of all dilutive potential ordinary
shares into ordinary shares.
20252024
Movement in reserves$000$000
Forward currency and option contracts
Gain / (loss) on cash flow hedges (9,739)(6,055)
Income tax effect on gain / (loss) on cash flow hedges 2,726 1,695
Hedging gain / (loss) reclassified to profit & loss 3,536 4,690
Income tax effect on reclassifications to profit & loss (957)(1,320)
Release of early closed out foreign exchange contracts (4,330)(6,728)
Deferred tax on early closed out foreign exchange contracts 1,214 1,884
Currency translation differences
Translation of foreign operations 787 (18)
Net movement in other comprehensive income (6,763)(5,852)
10. Components of Other Comprehensive Income
20252024
Earnings per share$000$000
Profit / (Loss) attributable to ordinary equity holders 13,359 28,452
# of Shares# of Shares
000000
Weighted average number of ordinary shares for basic and
diluted earnings per share
538,433 541,455
Basic earnings per share $0.02 $0.05
Diluted earnings per share $0.02 $0.05
20252024
Cash and cash equivalents$000$000
Cash at bank and on hand13,830 9,421
Short-term deposits35,908 11,487
Total cash and cash equivalents49,738 20,908
12. Cash and Cash Equivalents
Cash at bank earns interest at the bank’s floating rates. Short-term deposits are made
for varying periods between 1 and 3 months, depending on the cash requirements of the
Group, and earn interest at the respective term deposit rates.
118New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
20252024
Trade and other receivables$000$000
Trade receivables13,716 13,968
Provision for expected credit losses(302) -
Prepayments3,032 2,991
GST receivable707 1,455
Other receivables109 13
Total trade and other receivables17,262 18,427
Trade receivables generally have 20-30 day terms and are recognised at their
realisable value.
20252024
Ageing analysis of trade receivables$000$000
> 90 days overdue179 311
61 - 90 days overdue9 36
31 - 60 days overdue38 246
< 30 days overdue1,634 2,985
Not yet due11,856 10,390
Total receivables13,716 13,968
Provision for expected credit losses$000$000
As at beginning of the year- 63
Increase / (decrease) in provision for expected credit losses302 -
Reversal of unused amounts- (63)
As at year end302 -
13. Trade and Other Receivables
20252024
Inventories$000$000
Raw materials8,528 11,995
Work in progress757 1,816
Finished goods17,905 23,248
Total inventories27,190 37,059
The carrying value of finished goods as at 31 January 2025 includes a fair value uplift
at the point of harvest of $4,554k (2024: $8,326k) and net realisable value provision of
$3,374k (2024: $5,066k).
20252024
Amount of inventories recognised as an expense in the consolidated
statement of comprehensive income$000$000
Cost of inventories recognised as an expense194,143 172,693
Movement in net realisable value provision(1,683) (605)
Total cost of goods sold including fair value uplift at point of harvest192,460 172,088
14. Inventories
The cost of inventories recognised as an expense for the year ended 31 January 2025
includes a fair value uplift at the point of harvest of $32,443k (2024: $30,161k).
This cost is included in the cost of goods sold in the consolidated statement of
comprehensive income.
The cost of inventory includes fish harvested at the fair value less cost to sell at
harvest date (“deemed cost”). As at 31 January 2025 no volumes were forecasted to
be sold at returns materially below deemed cost plus further manufacturing costs.
119New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
20252024
Reconciliation of the carrying value of biological assets$000$000
Restated (Note 4)
As at 1 February94,460 72,692
Increase due to production86,67285,949
Decrease due to harvest(73,896)(66,510)
Decrease due to mortality(14,059) (12,628)
Changes in fair value(5,032) 14,957
As at 31 January88,145 94,460
20252024
Live weight harvest & estimated closing biomasstonnestonnes
Total live weight harvested for the year7, 70 3 7,088
Closing fresh water stocks171 176
Closing sea water stocks4,708 5,203
Total estimated closing biomass live weight as at year end4,879 5,379
20252024
Fair Value recognised in the statement of comprehensive income$000$000
Restated (Note 4)
Fair value included in cost of goods sold(32,443)(30,161)
Fair value gain on biological transformation27, 4 1 145,118
Total Change in Fair Value(5,032) 14,957
15. Biological Assets
The Group has two hatcheries in the South Island and six operational marine salmon
farms in the Marlborough Sounds. The fish livestock typically grow for up to 31 months
before harvest.
Fair value measurement
Biological assets are, in accordance with NZ IAS 41, measured at fair value less costs to
sell. All fish at sea are subject to a fair value calculation, while broodstock and smolt are
measured at cost less impairment losses (as the best estimate of fair value given little
biological transformation). Measurement of fair value is performed using a discounted
cash flow model and is categorised at Level 3 in the fair value hierarchy, as the input is
mostly unobservable.
The valuations are based on an income approach and takes into consideration
unobservable inputs based on biomass in the sea, the estimated growth rate, mortality
and cost to completion at site level. Quality and size of the fish going forward and
forecast sales prices are considered at a Group level. A relevant contributory asset
charge is included within the expected cash flow.
The fair value model calculates the net present value of expected cash flow. Valuation is
based on a variety of premises, many of which are unobservable. For mature fish (ready
for harvesting) on the reporting date, uncertainty mainly involves realised prices and
volume. For immature fish (not ready for harvesting), the level of uncertainty is generally
higher as the immaturity introduces uncertainty around biological transformation and
mortality.
Sales Price
There is no independently observable market price for King salmon ex-harvest and
therefore the sales price is based on the sales price the Group receives for finished
product.
120New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Estimated remaining production cost
The planned point of harvesting is assessed based on the Group’s production plan for
the year ahead, however, there may be uncertainty regarding the estimated growth
rate which in turn would affect cost. For immature fish, the fair value is adjusted by
the estimated remaining cost necessary to grow the fish to optimal harvest weight.
Forecast production costs include provisions for estimated feed prices, the cost of labour
and other costs of biological transformation. Estimations are affected by uncertainty
regarding the feed pricing, the sea temperature and other conditions affecting growth
and costs.
Volume
Estimate harvest volume is based off the size and weight of fish on balance date
adjusted for the forecast future growth and mortality until point of harvest. The
estimated number of fish is based on the number of smolt transferred to the sea, and
mortality, which is a given percentage of the fish in the sea. These percentages are
determined separately for each site based on the environmental factors prevalent at the
site and expected for the forecast period.
Discount Rate
The discount rate considers both the time value (tying up capital) and risk adjustment
(risk related to volume, cost and price). The time value of money is estimated based
off the NZ 10 year government bond. The risk adjustment reflects the price discount a
hypothetical buyer would demand as compensation for the risk assumed by investing
in live fish rather than another investment. This risk adjustment has been estimated
using the company’s Weighted Average Cost of Capital adjusted for a return on the
processing and sales operations as well as other contributory assets on the fish farming
side of the business. Removing these components leaves the risk adjusted discount rate
specific to biological assets at 14.5% for FY25 (Prior year: 13.5%).
Fair value risk and sensitivity
New Zealand King Salmon considers three components to be key parameters for
valuation: price, estimated harvest biomass volume and feed cost. The following table is
a sensitivity analysis, showing the change in the fair value of the biological assets, and
hence the Company’s profit before tax, in the event of changes in these parameters. The
estimate of fair value of the biomass will always be based on uncertain assumptions,
even though the Group has built up expertise in assessing these factors.
Climate risk impact on biological assets
The Group recognises that climate-related risks, such as warmer water temperatures,
can impact on the fair value of biological assets. Climate-related risks can impact on
fish health factors, such as increased mortality and lower than anticipated growth rates.
The Group notes that fish mortality is multi-factorial with the dominant correlation
currently occurring with prolonged elevated water temperature which increases stress
and reduces the fish’s resistance to bacteria and other pathogens. The Group consider
these risks when assessing the biomass measurement and fair value of biological assets
as at 31 January 2025.
20252024
Sensitivity Analysis of Biomass - Effect on Pre-Tax Profit$000$000
Change in Sales Price
1
+10%20,935 24,624
Change in Sales Price1-10%(20,935) (24,624)
Change in harvest volume2+300MT7,642 7,238
Change in harvest volume2-300MT(7,642) (7,238)
Change in Feed Price1 +10%(2,804) (3,810)
Change in Feed Price1 -10%2,804 3,810
1 In respect of sales and feed pricing one of the key variables is FX for which the group has hedging in place
2 Harvest volume is measured at the Gilled and Gutted weight (G&G)
121New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Freehold land
and buildings
Plant,
equipment
and fittings
Vehicles and
sea vessels
Capital work
in progressTotal
Cost$000$000$000$000$000
As at 1 February 202316,045 96,707 3,545 5,828 122,125
Additions- - - 6,048 6,048
Disposals- (1,132) (294) - (1,426)
Transfers from WIP1,068 5,405 1,865 (8,338) -
As at 31 January 202417,113 100,980 5,116 3,538 126,747
Additions- - - 10,177 10,177
Disposals(45) (512) (63) - (620)
Transfers from WIP1,982 3,495 299 (5,776) -
As at 31 January 202519,050 103,963 5,352 7,939 136,304
Depreciation and impairment
As at 1 February 20234,013 67,330 2,606 - 73,949
Depreciation629 5,056 170 - 5,855
Disposals- (1,106) (286) - (1,392)
As at 31 January 20244,642 71,280 2,490 - 78,412
Depreciation688 5,096 220 - 6,004
Disposals(18) (470) (51) - (539)
As at 31 January 20255,312 75,906 2,659 - 83,877
Net Book Value
As at 31 January 202412,471 29,700 2,626 3,538 48,335
As at 31 January 202513,738 28,057 2,693 7,939 52,427
16. Property, Plant and Equipment
Property, Plant and Equipment is stated at
historical cost less depreciation and any impairment
adjustments. Historical cost includes expenditure that
is directly attributable to the acquisition of Property,
Plant and Equipment. Asset residual values and useful
lives are reviewed, and adjusted if appropriate, at
each balance date or whenever events or changes in
circumstances indicate that the carrying amount may
not be recoverable.
As at 31 January 2025 work in progress includes spend
related to the assets required for the Blue Endeavour
pilot farm. Capital expenditure will continue into the
following financial year as necessary to complete this
project.
Borrowing costs
There were no borrowing costs capitalised in the year
ending 31 January 2025 (2024: $nil).
122New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Development
in progressTrademarks
Farm and
hatchery
licensesSoftwareTotal
Cost$000$000$000$000$000
As at 1 February 20236,094 242 4,209 5,761 16,306
Additions224 - - - 224
Transfers from WIP(33) - - 33 -
As at 31 January 20246,285 242 4,209 5,794 16,530
Additions- - - - -
Reclassification to PPE to capital works in progress(94) - - - (94)
As at 31 January 20256,191 242 4,209 5,794 16,436
Amortisation and impairment
As at 1 February 20236,094 213 2,170 4,343 12,820
Amortisation- - 107 321 428
As at 31 January 20246,094 213 2,277 4,664 13,248
Amortisation- - 103 310 413
As at 31 January 20256,094 213 2,380 4,974 13,661
Net Book Value
As at 31 January 2024191 29 1,932 1,130 3,282
As at 31 January 202597 29 1,829 820 2,775
17. Intangibles
Trademarks
Trademarks are externally
acquired and are carried
at cost less impairment.
They have indefinite useful
lives and are assessed
annually for impairment.
No impairment has been
recognised during the year
(2024: $ nil).
123New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Land &
Buildings
Motor
Vehicles
Plant &
Equipment
Total
Cost$000$000$000$000
As at 1 February 2023 5,908 928 1,134 7, 970
Additions 2,785 489 162 3,436
Disposals - - - -
Remeasurement 219 - - 219
As at 31 January 2024 8,912 1,417 1,296 11,625
Additions 3,262 428 1,226 4,916
Disposals (1,605) (299) (544) (2,448)
Remeasurement 265 (10) 18 273
As at 31 January 2025 10,834 1,536 1,996 14,366
Amortisation
As at 1 February 2023 2,828 380 446 3,654
Amortisation 724 283 295 1,302
Disposals - - - -
As at 31 January 2024 3,552 663 741 4,956
Amortisation 818 330 572 1,720
Disposals (1,605) (299) (509) (2,413)
As at 31 January 2025 2,765 694 804 4,263
Net Book Value
As at 31 January 2024 5,360 754 555 6,669
As at 31 January 2025 8,069 842 1,192 10,103
Land &
Buildings
Motor
Vehicles
Plant &
Equipment
Total
$000$000$000$000
Lease liabilities at 1 February 20233,265 558 696 4,519
Additions 2,784 489 162 3,435
Disposals - - - -
Remeasurement 210 - - 210
Interest for the period 165 24 22 211
Lease payments made (857) (303) (315) (1,475)
Lease liabilities as at 31 January 2024 5,567 768 565 6,900
Additions 3,262 428 1,226 4,916
Disposals - - (37) (37)
Remeasurement 275 (10) 18 283
Interest for the period 358 27 52 437
Lease payments made (1,051) (355) (612) (2,018)
Lease liabilities as at 31 January 2025 8,411 858 1,212 10,481
18. Right-of-use Assets19. Lease Liabilities
Short term leases
The Group recognised $520k of payments for short-term lease equipment in the year
(2024: $590k).
Total lease payments
The Group had total cash outflows for leases of $2,539k in 2025 (2024: $2,065k).
124New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
20252024
Lease liabilities$000$000
Current1,834 1,028
Non-current8,647 5,872
Total lease liabilities 10,481 6,900
20. Interest Bearing Loans and Borrowings
21. Trade and Other Payables
22. Employee Liabilities
23. Commitments and Contingencies
20252024
Current interest bearing loans and borrowings$000$000
Secured bank loans2,000 750
Other borrowings2,505 2,667
Total current interest bearing loans and borrowings4,505 3,417
Non-current interest bearing loans and borrowings
Secured bank loans-2,000
Total non-current interest bearing loans and borrowings-2,000
20252024
$000$000
Trade payables9,799 15,480
Other payables3,657 591
Total trade and other payables13,456 16,071
20252024
Current employee liabilities$000$000
Accrued salaries and wages739 465
Bonuses1,320 1,160
Employee annual leave benefits 2,522 2,540
Long service leave257 274
Total current employee liabilities4,838 4,439
Non-current employee benefits
Long service leave326 472
Total non-current employee benefits326 472
Long service leave
Long service leave provisions are calculated based on the expected future payments
to employees, discounted to their net present value.
Capital commitments
The Group has entered into agreements to purchase plant and equipment. As at 31
January 2025 the total commitment is $6,697k (2024: $921k).
Guarantees
The Group has three guarantee facilities totalling $138k (2024: $128k).
125New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
24. Risk Management
The Group’s activities expose it to a variety of risks: market risk, credit risk, liquidity risk
and climate change risk. The Audit, Finance and Risk Committee has responsibility for
the oversight of all risk domains, which includes managing climate risk, as delegated
by the Board. The Group uses derivative financial instruments to hedge certain risk
exposures. Financial risk management is the responsibility of the Chief Financial Officer
in accordance with the Treasury Policy approved by the Board of Directors.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument
will fluctuate because of changes in market prices. This comprises of two key types of
risks; currency and interest rate risk.
Currency risk
The Group has exposure to foreign exchange risk as a result of transactions
denominated in foreign currency, arising primarily from normal trading activities, but
also from the net investment in the foreign subsidiary. The Group’s exposure to foreign
currency risk at the reporting date was as follows:
2025
In NZD ‘000sUSDAUDJPYEUROther
Trade and other receivables6,287 1,367 173 365 202
Trade and other payables(1,818) (3,528) (20) (79) (44)
Gross consolidated statement of
financial position exposure
4,469 (2,161) 153 286 158
Forward exchange contracts and
options - nominal amount
212,998 28,842 14,918 - -
2024
In NZD ‘000sUSDAUDJPYEUROther
Trade and other receivables6,856 1,539 184 2,534 27
Trade and other payables(147) (8,604) (3) (2)(28)
Gross statement of financial
position exposure
6,709 (7,065) 181 2,532 (1)
Forward exchange contracts and
options - nominal amount
258,830 37,551 20,733 - -
The Group manages its foreign currency risk by hedging its future exposure in
respect of its import purchases and its export sales, over a maximum of five years,
when exposures are considered highly probable. The Group hedges this exposure
with the use of forward foreign exchange contracts and options. The Group has
a policy of hedging foreign exchange exposures within a range of hedging limits
broadly summarised as follows: Up to two years – 15% to 100%, two to five years –
0% to 50%. The notional contract amounts of forward foreign exchange contracts
and options outstanding at balance date were $28.8m on the import side (2024:
$37.5m) and $227.9m on the export side (2024: $279.5m), for delivery over the next
three financial years, in line with anticipated payment dates.
126New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
20252024
Foreign Exchange Contracts and OptionsNZD $000NZD $000
Carrying amount (current and non-current)(9,102) (2,784)
Notional amount256,758 317,115
Maturity dateFeb 2025 - Jul 2027Feb 2024 - Jul 2027
Hedge ratio1:11:1
Change in fair value of outstanding instruments since 1 February(9,393) (5,837)
Change in value of hedged item used to determine hedge effectiveness9,393 5,837
Average hedged rate
USD0.61270.6317
AUD0.91880.9187
JPY70.3969.94
with the level of expected foreign currency sales and purchases and changes in foreign
exchange forward rates.
There is an economic relationship between the hedged items and the hedging
instruments as the terms of the foreign exchange and commodity forward contracts
and options match the terms of the expected highly probable forecast transactions (i.e.,
notional amount and expected payment date). The Group has established a hedge ratio
of 1:1 for the hedging relationships as the underlying risk of the foreign exchange and
commodity forward contracts and options are identical to the hedged risk components.
To test the hedge effectiveness, the Group uses the hypothetical derivative method and
compares the changes in the fair value of the hedging instruments against the changes
in fair value of the hedged items attributable to the hedged risks.
The hedge ineffectiveness can arise from:
• Differences in the timing of the cash flows of the hedged items and the hedging
instruments
• Different indexes (and accordingly different curves) linked to the hedged risk of the
hedged items and hedging instruments
• The counterparties’ credit risk differently impacting the fair value movements of the
hedging instruments and hedged items
• Changes to the forecasted amount of cash flows of hedged items and hedging
instruments
The NZ dollar equivalent of unhedged currency risk on assets at balance date is $1,149k
(2024: $3,475k) whilst the NZ dollar equivalent of unhedged currency risk on liabilities at
balance date is $62k (2024: nil).
The Group imports nearly all of its feed from Australia, purchases of which are in
Australian dollars. The Group exports salmon to many countries, the major ones
being Australia, Japan and the United States. Sales are denominated in Australian
dollars (AUD), Japanese yen (JPY) and United States dollars (USD) respectively.
In order to protect against exchange rate movements, the Group has entered into
forward exchange contracts and options to hedge the net exposure to AUD, JPY
and USD respectively.
Realised gains /losses on exercise of foreign exchange contracts and options is
recognised within revenue and cost of goods sold when the hedged transactions occur.
Foreign exchange forward contracts and options are designated as hedging instruments
in cash flow hedges of highly probable forecast sales in USD, AUD and JPY and forecast
purchases in USD and AUD. The Group has typically hedged 50-55% of the net exposure
of these forecast transactions. The foreign exchange forward contract balances vary
127New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Currency Sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in
AUD, USD and JPY exchange rates. The impact on the Group’s pre-tax profit is the result
of a change in fair value of monetary assets and liabilities. The impact on the Group’s
equity is due to changes in the fair value of forward exchange contracts and options
designated as cash flow hedges.
Interest rate risk
The Group has fixed rate debt (which exposes the Group to risk associated with
movements in interest rates) maturing in August 2025 and October 2025. No other debt
is drawn as at 31 January 2025.
Credit risk
Credit risk is the risk of financial loss that arises if a counterparty to a financial
instrument does not meet its contractual obligations. Financial instruments which
potentially subject the Group to credit risk principally consist of bank balances, trade
receivables, derivative financial instruments and financial guarantees.
Customer credit risk is managed centrally subject to the Group’s established policy,
procedures and control relating to customer credit risk management. Credit quality
of a customer is assessed based on an extensive external credit rating scorecard and
individual credit limits are defined in accordance with this assessment. Outstanding
customer receivables and contract assets are regularly monitored and any shipments to
major customers are generally covered by trade credit insurance.
An impairment analysis is performed at each reporting date using the accounts
receivable aging report to measure expected credit losses. The impairment analysis is
Change in
NZD/AUD rateEquityProfit/(Loss)
$000$000
2025+10%(2,585)22
-10%3,160 (27)
2024+10%(3,273) 198
-10%4,000 (242)
Change in
NZD/USD rateEquityProfit/(Loss)
$000$000
2025+10%16,022(1,669)
-10%(20,092)2,040
2024+10%16,356(1,263)
-10%(20,743) 1,543
Change in
NZD/JPY rateEquityProfit/(Loss)
$000$000
2025+10%625(58)
-10%(726) 71
2024+10%811 (40)
-10%(938)49
128
New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
based on days past due for all customers with coverage by trade credit insurance.
The calculation reflects the probability-weighted outcome, the time value of money
and reasonable and supportable information that is available at the reporting date
about past events, current conditions and forecasts of future economic conditions.
Generally, trade receivables are written-off if past due for more than one year and
are not subject to enforcement activity.
Financial instruments are only entered into with banks that have in place an
executed International Swaps and Derivatives Association (ISDA) Master Agreement
with the Group.
Maximum exposures to credit risk as at balance date are:
20252024
$000$000
Cash and cash equivalents49,738 20,908
Trade and other receivables17,262 18,427
Other current financial assets3,000 6,000
The above maximum exposures are net of any recognised provision for losses. Term
deposit of $3m is held under a Specific Security Agreement with a second NZ bank
securing a derivatives agreement.
Concentrations of credit risk
Bank balances are maintained with National Australia Bank in Australia, PNC Bank in
USA, and with Bank of New Zealand and Kiwibank in New Zealand. NZKS has two major
customers for the period 1 February 2024 to 31 January 2025 covering 24.3% of total
net revenue. Beyond these larger customers there is a wide spread of debtors, in terms
of size and geographical location within New Zealand and overseas. Concentration of
credit risk in trade receivables is not considered significant as the Group’s customers
operate in different market channels and geographic areas.
Liquidity risk
The Group performs cash flow forecasting activities on a daily basis to ensure it has
sufficient cash to meet operational needs. Surplus cash is invested in term deposits.
Liquid assets are maintained at all times at an amount sufficient to cover the forecast
cash payments to employees, suppliers, tax authorities and banking institutions as they
fall due.
The following table analyses the undiscounted contractual cash flows for all financial
liabilities:
Less than
one year
Between
one and
two years
Between
two and
five years
Five + years
As at 31 January 2025$000$000$000$000
Bank loans2,000 - - -
Lease liabilities2,319 2,015 3,805 4,894
Trade and other payables13,456 - - -
Other borrowings2,505 - - -
Financial guarantee contracts138 - - -
Total non-derivative liabilities 20,418 2,015 3,805 4,894
Derivatives - inflow1,016 507 32 -
Derivatives - outflow(7,153) (3,381) (125) -
Total derivative liabilities(6,137)(2,874) (93) -
129
New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Less than
one year
Between
one and
two years
Between
two and
five years
Five + years
As at 31 January 2024$000$000$000$000
Bank loans750 2,000 - -
Lease liabilities1,326 1,202 1,431 5,146
Trade and other payables16,071 - - -
Other borrowings2,700 - - -
Financial guarantee contracts132 - - -
Total non-derivative liabilities 20,979 3,202 1,431 5,146
Derivatives - inflow976 1,399 1,431 -
Derivatives - outflow(3,639) (2,165) (786) -
Total derivative liabilities (2,663) (766) 645 -
Climate Risk
The Group recognises climate change will have an impact on our operations. The key
risks are both physical risks (climate and water temperature impacting fish health)
and transition risks resulting from the process of consumers adjusting their taste and
preferences towards a lower carbon economy. During the transition period, regulatory
risk has also been identified, as the landscape continues to be dynamic, cost of
compliance is increasing and not showing any signs of stabilising. The Audit, Finance and
Risk Committee has responsibility for the oversight of all risk domains, which includes
managing climate risk, as delegated by the Board. An internal sustainability working
group has been established to develop the Group’s strategic response to climate risk in
line with the new Aotearoa New Zealand Climate Standards released by the External
Reporting Boards (XRB) in December 2022. The Group falls into the category of a
Climate Reporting Entity under the Financial Markets Conduct Act 2013. The Group
prepares annual climate related disclosures in accordance with the Aotearoa New
Zealand Climate Standards.
25. Fair Value of Financial Instruments
The carrying value of cash and short term deposits, term deposits, trade receivables,
trade payables and other current liabilities is considered a reasonable approximation to
their fair value due to the short term maturities of these instruments.
The carrying value of the Business Finance Scheme Loan via BNZ is $2m (FY24: $2.75m)
and is considered a reasonable approximation of its fair value due to the short term
maturity of the drawing.
The following financial instruments of the Group are carried at fair value:
20252024
Current derivative financial assets$000$000
Forward exchange contracts460 534
Foreign exchange options556 442
Total current derivative financial assets1,016 976
Current other financial assets
Term deposits (4 -12 month term)3,000 6,000
Total other current financial assets3,000 6,000
Non-current derivative financial assets
Forward exchange contracts45 1,324
Foreign exchange options495 1,505
Total non-current derivative financial assets540 2,829
Current derivative financial liabilities
Forward exchange contracts4,438 1,888
Foreign exchange options2,715 1,751
Total current derivative financial liabilities7,153 3,639
130
New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Valuation methods
Financial instruments have been categorised into the following hierarchy and valued
according to the following definitions, based on the lowest level input that is significant
to the fair value measurement as a whole:
Level 1: Quoted prices in active markets for identical assets or liabilities that the entity
can access at the measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for
the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the assets or liabilities that are not based on observable market data
(unobservable inputs).
All derivative financial instruments for which a fair value is recognised have been
categorised within Level 2 of the fair value hierarchy. Industry experts have provided
the fair values for all derivatives based on an industry standard model. There were
no transfers between Level 1 and Level 2 during the period ended 31 January 2025 (31
January 2024 - nil).
26. Capital Management
Group Capital
The capital of the Group consists of share capital, reserves and retained earnings.
The Group’s objectives when managing capital are to safeguard the Group’s ability to
continue as a going concern in order to provide returns for shareholders, benefits for
shareholders and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure the Group may adjust dividends
paid to shareholders, return capital to shareholders, issue new shares or sell assets to
reduce debt.
Ordinary shares are fully paid with no par value. Each ordinary share has an equal right
to vote, to participate in dividends and to share in any surplus on winding up of the
Company. No dividend was declared nor paid during the year ended 31 January 2025
(2024: No dividend was declared nor paid).
27. Capital and Reserves
Share Capital
20252024
Issued shares$000$000
Ordinary shares538,183 541,455
Total issued shares538,183 541,455
# of SharesShare Capital
2025202420252024
Movement in ordinary share capital000000$000$000
The beginning of the period541,455 541,455 180,143 180,143
Share issue- - - -
Cancellation of shares(3,272) - - -
Total share capital as at period end538,183 541,455 180,143 180,143
Non-current derivative financial liabilities
Forward exchange contracts2,417 632
Foreign exchange options1,089 2,319
Total non-current derivative financial liabilities3,506 2,951
131
New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
On 28 February 2024 the Group acquired and cancelled 3,272,437 ordinary shares,
relating to a Put Option exercised by former CEO Grant Rosewarne. The Put Option
required the Group to acquire certain shares held by a family trust associated with Mr
Rosewarne that were originally acquired under long-term incentive plans to enable
repayment of a loan owed by Mr Rosewarne to the Group as part of those long term
incentive plans.
Reserves
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising
from the translation of the financial statements of the foreign subsidiaries.
Hedge reserve
The hedge reserve represents the unrealised gains and losses on foreign currency forward
contracts that the Group has taken out in order to mitigate foreign currency risks, net of
deferred tax. Also included are the realised gains on early closed foreign currency forward
contracts where the hedged future cash flows are still expected to occur (net of tax).
Retained earnings
Retained earnings represent the profits retained in the business.
Share based payment reserve
The share-based payment reserve relates to two long term incentive (LTI) schemes
(FY24: one scheme) and two employee share ownership schemes (FY24: two schemes).
A new performance share rights (PSR) LTI scheme was approved in FY25. A total of
4,889,679 PSR were issued to eligible senior employees under the PSR LTI scheme in FY25
(FY24: 0 PSRs were issued).
20252024
$000$000
Unrealised (gain) / loss6,467 2,035
Realised (gain) / loss(292) (3,410)
Total gain / (loss) on hedge reserves 6,175 (1,375)
28. Events After Balance Date
On 3 March 2025 the Group announced it has entered into a five year partnership
with the New Zealand Government under the Sustainable Food and Fibre Futures
(SFF Futures) fund. This programme will pilot technologies to accelerate the pace
of development of salmon farming in New Zealand, with an investment by the
Government of up to $11.7m. No funding has been recognised in the financial year
ended 31 January 2025.
No final dividend was declared in respect of the year ended 31 January 2025 (2024: Nil).
132New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
The principal activity of The New Zealand King Salmon Co. Limited is the farming,
processing, sale and distribution of salmon. The activity of New Zealand King Salmon
Exports Limited, The New Zealand King Salmon Pty Limited, and New Zealand King
Salmon USA Incorporated is the sale of salmon.
At balance date Oregon Group Limited owned 39.79% (2024: 39.55%), China Resources
Ng Fung Limited owned 9.87% (2024: 9.81%) and NZ Superannuation Fund owned
8.88% (2024: 8.91%) of the shares in New Zealand King Salmon Investments Limited.
SubsidiaryCountry of IncorporationEquity Interest
The New Zealand King Salmon Co LimitedNew Zealand100%
New Zealand King Salmon Exports LimitedNew Zealand100%
The New Zealand King Salmon Pty LimitedAustralia100%
New Zealand King Salmon USA IncorporatedUnited States of America100%
29. Related Party Disclosures
Subsidiaries
New Zealand King Salmon Investments Limited has the following trading subsidiaries.
20252024
Related party payments$000$000
Good and services purchased from other related parties- -
Directors fees650 544
Total related party payments650 544
Related party sales$000$000
Goods sold to related parties
1
4,444 2,306
Total related party sales4,444 2,306
Amounts owing to related parties20252024
Current amounts owing to related parties$000$000
Other amounts owing to related parties237 233
Fees payable to directors103 55
Total current amounts owing to related parties340 288
Amounts owing by related parties$000$000
Amounts owing by related parties335 72
Total amounts owing by related parties335 72
1
During the prior period NZKS recommenced sales of King Salmon to China through China Resources Food Supply Chain
Co. Limited, 40% owned by China Resources Enterprise Limited, who is a shareholder of NZKS. Immaterial sales of salmon
products were also made to Directors during this period.
Transactions with related parties
The following provides the total amount of transactions that were entered into with
related parties for the relevant financial year:
133New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
30. Auditor’s Remuneration
20252024
$000$000
Audit fees - PwC320 -
Audit fees - EY- 349
Other assurance services - PwC55 -
Other services - PwC21 -
Other services - EY- 40
Total auditor's remuneration396 389
In the current year Other Assurance services relate to the limited assurance of
greenhouse gas emissions and Other Services to treasury advisory. In FY24 other services
provided by EY related to non assurance services in respect of climate change and
sustainability services.
31. Cash Flow Information
20252024
Cash generated from operating activities$000$000
Profit / (loss) before tax19,094 40,060
Adjusted for
Depreciation and amortisation8,137 7,585
(Gain)/loss on sale of assets64 (4)
Release of early closed out foreign exchange contract close outs from OCI(4,330) (6,728)
Share-based payments140 (211)
Net foreign exchange differences213 139
Net loss /(profit) on derivative instruments at fair value through profit or loss116 (25)
(Increase)/decrease in trade and other receivables and prepayments1,165 (1,854)
(Increase)/decrease in inventories and biological assets16,184 (29,098)
Increase/(decrease) in trade and other payables(1,745) 3,364
Income tax paid(580) (15)
Net cash flow (to) / from operating activities38,458 13,213
BorrowingsLeasesTotal
Liabilities from financing activities$000$000$000
As at 1 February 2023(3,500) (4,519) (8,019)
Financing cash flows(1,917) 1,264 (653)
New leases and remeasurements - (3,645) (3,645)
Interest expense(97) (211) (308)
Interest payments (presented as operating cash flows)97 211 308
As at 31 January 2024(5,417) (6,900) (12,317)
Financing cash flows912 1,580 2,492
New leases and remeasurements - (5,161) (5,161)
Interest expense(141) (437) (578)
Interest payments (presented as operating cash flows)141 437 578
As at 31 January 2025(4,505) (10,481) (14,986)
134
New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
32. Revenue from Contracts with Customers
Revenue from contracts with customers is recognised when the control of the goods has
been transferred to customers, being at the point when the goods are delivered. Delivery
of goods is completed (i.e. the performance obligation is fulfilled) when the goods have
been delivered pursuant to the terms of the specific contract agreed with the customer
and the risks associated with ownership have been transferred to the customer. Revenue
is measured according to the contracted price agreed with customers, which represents
expected consideration received or receivable, net of returns, discounts, and allowances.
Revenue is only recognised to the extent that it is highly probable that a significant
reversal will not occur. The payment terms vary depending on the individual contracts.
No deemed financing components are present as there are no significant timing
differences between the payment terms and revenue recognition.
135New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
20252024
Revenue by Product group$000$000
Whole fish 109,542 92,996
Fillets, Steaks & Portions 51,278 45,801
Hot Smoked 13,568 11,608
Cold Smoked 28,727 28,416
Petfood 2,578 3,396
Other 5,300 4,889
Total revenue by product group210,993 187,106
20252024
Revenue by Brand$000$000
Ōra King 70,385 56,107
Regal 49,748 36,942
Southern Ocean 5,466 5,541
Omega Plus 2,578 3,396
New Zealand King Salmon 82,816 85,120
Total revenue by brand 210,993 187,106
20252024
Revenue by geographical location of customers$000$000
New Zealand 67,795 66,755
North America 91,740 77,380
Australia 24,133 20,906
Japan 5,343 4,840
Europe 5,883 5,043
China 4,910 2,768
Other 11,189 9,414
Total revenue by geographical location of customers210,993 187,106
Sales net of settlement discounts to two major
customers for the period 1 February 2024 to 31
January 2025 totalled $51.2m, 24.3% of total
net revenue (For the period 1 February 2023 to
31 January 2024 two major customers totalled
$48.7m or 26% of total net revenue).
136New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
33. Segment Information
Segment results
The Group is principally engaged in the farming, processing, sale and distribution of
premium salmon products. The Group’s strategy is to maximise the longer term sales
and overall margins of these salmon products by focusing on branded, premium priced
and differentiated products across its range of markets, channels and customers.
The Executive management of the Group is the Chief Operating Decision Maker
(CODM). The Group is a vertically integrated salmon producer (egg to plate) and the
operating results of the whole business are monitored for the purpose of assessing
performance and allocating capital. Accordingly, the Group is considered to consist of
one operating segment.
The Executive management of the Group monitors the operating results of the whole
business. Operating performance is evaluated based on Pro-Forma Operating EBITDA.
Pro-Forma Operating EBITDA refers to earnings before interest, tax, depreciation
and amortisation, which are then adjusted to remove the fair value impacts of the
application of NZ IAS 41 Agriculture and NZ IAS 2 Inventories and the early foreign
currency contract close outs.
Refer also to Note 32 for detail of disaggregation of revenue by product, brand and
geographical area.
137New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Independent Auditor’s Report
To the shareholders of New Zealand King Salmon Investments Limited
Our opinion
In our opinion, the accompanying consolidated financial statements (the financial
statements) of New Zealand King Salmon Investments Limited (the Company), including
its subsidiaries (the Group), present fairly, in all material respects, the financial position
of the Group as at 31 January 2025, its financial performance, and its cash flows for
the year then ended in accordance with New Zealand Equivalents to International
Financial Reporting Standards (NZ IFRS) and International Financial Reporting Standards
Accounting Standards (IFRS Accounting Standards).
What we have audited
The Group’s financial statements comprise:
• the consolidated statement of financial position as at 31 January 2025;
• the consolidated statement of comprehensive income for the year then ended;
• the consolidated statement of changes in equity for the year then ended;
• the consolidated statement of cash flows for the year then ended; and
• the notes to the financial statements, comprising material accounting policy
information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New
Zealand) (ISAs (NZ)) and International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of
the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard
1 International Code of Ethics for Assurance Practitioners (including International
Independence Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing
and Assurance Standards Board and the International Code of Ethics for Professional
Accountants (including International Independence Standards) issued by the International
Ethics Standards Board for Accountants (IESBA Code), and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
In our capacity as auditor and assurance practitioner, our firm provides other assurance
services. Our firm carries out other assignments in the areas of other services relating to
treasury advisory. The firm has no other relationship with, or interests in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current year. These matters
were addressed in the context of our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
138New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Description of the key audit matterHow our audit addressed the key audit matter
Biological Assets - Existence, Measurement and Valuation
As disclosed in Note 15, the Group holds biological assets comprising
live salmon, with a total biomass of 4,879 metric tonnes and a carrying
value of $88.1 million as at 31 January 2025.
Measured at fair value less cost to sell, in line with NZ IAS 41 Agriculture
and NZ IFRS 13 Fair Value Measurement, the biological assets represent
approximately 35% of the Group’s total assets.
The measurement of the biological asset involves significant judgement
regarding both the biomass measurement at year-end and the fair
value less cost to sell valuation. The biomass is estimated based on the
Group’s livestock growth model which relies on the Group’s established
control procedures for measurement of both number of fish and
biomass, including monitoring estimated harvest volumes within their
growth models against actual harvests.
As per Notes 4 and 15, the Group changed their valuation technique in
estimating the fair value of biological assets, using a discounted cash
flow model in the current year. The model is reliant upon a number
of significant inputs and assumptions, including forecast cash flows
associated with the live fish in seawater (forecast sales prices and
estimated remaining production costs), forecast biomass to harvest,
and fish mortality.
We determined this to be a key audit matter due to the significance of
the judgements applied by Directors in measuring the biomass of live
salmon and estimating the fair value of Biological Assets.
We performed the following:
• In relation to the salmon biomass and the valuation thereof, we gained an understanding of the Group’s processes
and controls and assessed the design effectiveness of certain controls associated with the existence, measurement
and monitoring of the live salmon biomass, and the fair value measurement of the biological asset.
• Tested the operating effectiveness of the Group’s controls for:
— recording and counting the number of smolt at the point of transfer from freshwater hatcheries to the sea
farms; and
— monitoring biomass harvest deviations against their estimated biomass within the Group’s livestock growth
model.
• Assessed the inputs into the Group’s livestock model used to estimate growth and biomass by considering the
reasonableness of the feed conversion rate against historic feed conversion rates.
• Considered the historical accuracy of the Group’s actual harvested biomass and estimated biomass from the
Group’s livestock growth model. In addition, we considered harvest deviations occurring after balance date.
• Engaged our valuation expert to independently assess the discounted cash flow methodology.
• Tested the mathematical accuracy of the calculation and agreed key inputs to supporting data such as board
approved budgets and actual biomass measurements.
• Considered whether the key assumptions used by management in the model, including forecast cash flows
associated with the live fish in seawater (derived from forecast sales price and estimated remaining production
costs) and forecast growth and mortality, were reasonable by:
— considering the appropriateness of cash flows included in the model which was limited to those associated with
the live salmon in the sea;
— challenging the reasonableness of these forecasts against historical performance;
— considering the accuracy of historical forecasts;
— assessing the impact of post year-end mortalities on the forecast harvest and mortality assumptions in the model.
We considered the appropriateness of disclosures in the financial statements.
139New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Description of the key audit matterHow our audit addressed the key audit matter
Inventory - Valuation
As per Note 14, inventories had a carrying value of $27.2 million, net
of a net realisable provision as at 31 January 2025.
The cost of inventory includes the fair value uplift of salmon,
recognised at the point of harvest of $4.6 million, and other
processing costs.
The carrying value of inventory is assessed at balance date to
determine if cost is greater than the net realisable value.
We determined this to be a key audit matter because of the
significance of the judgements involved in estimating the fair value
of salmon at the point of harvest, and in estimating the future sales
price to determine net realisable value.
To address the risks associated with inventory valuation, we performed the following procedures:
• Gained an understanding of the inventory valuation processes and assessed the design and implementation of
relevant controls, particularly those over net realisable value adjustments.
• Examined the calculation of the fair value of salmon at the point of harvest along with the direct and processing
costs contributing to the cost of inventory.
• Assessed the Group’s estimation of future sales prices by comparing them against the most recent historical sales
data and subsequent sales that occurred after the balance sheet date.
• Validated the carrying value of a sample of inventory items against subsequent sales amounts to confirm the
reasonableness of net realizable values.
We considered the appropriateness of disclosures in the financial statements.
Our audit approach
Overall group materiality: $2.1 million, which represents approximately 1% of Revenue.
We chose revenue as the benchmark because, in our view, it is a more stable benchmark given
that it is less impacted by any one-off items or fair value adjustments during the year. Revenue
is also a commonly used performance measure, and is a generally accepted benchmark.
We performed a full scope audit over the consolidated financial information of the Group.
As reported above, we have two key audit matters, being:
• Biological Assets — Existence, Measurement and Valuation
• Inventory — Valuation
Overview
140New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
As part of designing our audit, we determined materiality and assessed the risks of
material misstatement in the financial statements. In particular, we considered where
management made subjective judgements; for example, in respect of significant
accounting estimates that involved making assumptions and considering future events
that are inherently uncertain. As in all of our audits, we also addressed the risk of
management override of internal controls, including among other matters, consideration
of whether there was evidence of bias that represented a risk of material misstatement
due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is
designed to obtain reasonable assurance about whether the financial statements are
free from material misstatement. Misstatements may arise due to fraud or error. They are
considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for
materiality, including the overall Group materiality for the financial statements as a whole
as set out above. These, together with qualitative considerations, helped us to determine
the scope of our audit, the nature, timing and extent of our audit procedures, and to
evaluate the effect of misstatements, both individually and in the aggregate, on the
financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to
provide an opinion on the financial statements as a whole, taking into account the
structure of the Group, the accounting processes and controls, and the industry in which
the Group operates.
Other matter
The financial statements of the Group for the year ended 31 January 2024 were audited
by another auditor who expressed an unmodified opinion on those statements on 26
March 2024.
Other information
The Directors are responsible for the other information. The other information comprises
the information included in the Annual Report, but does not include the financial
statements and our auditor’s report thereon. The other information we obtained prior to
the date of this auditor’s report comprised the information included in the annual report,
excluding the Climate Related Disclosures FY25, which forms part of the annual report, but
will be published at a later date.
Our opinion on the financial statements does not cover the other information and we do
not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. If, based on the work we have performed
on the other information that we obtained prior to the date of this auditor’s report, we
conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
When we read the Climate Related Disclosures FY25, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the Directors and
use our professional judgement to determine the appropriate action to take.
141New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair
presentation of the financial statements in accordance with NZ IFRS and IFRS Accounting
Standards, and for such internal control as the Directors determine is necessary to enable
the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going
concern, and using the going concern basis of accounting unless the Directors either intend
to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial
statements, as a whole, are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs (NZ) and ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is
located at the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-
responsibilities/audit-report-1-1/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has
been undertaken so that we might state those matters which we are required to state to
them in an auditor’s report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the Company and the
Company’s shareholders, as a body, for our audit work, for this report, or for the opinions
we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is
Elizabeth Adriana (Adri) Smit.
For and on behalf of:
PricewaterhouseCoopers
Christchurch
27 March 2025
142New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
Glossary
ASX
Australian Securities Exchange
BAP
Best Aquaculture Practices
CEO
Chief Executive Officer
EBIT
Earnings Before Interest and Tax
EBITDA
Earnings Before Interest, Tax,
Depreciation and Amortisation
Executive
The Executive as disclosed in
the Leadership & Corporate
Governance Section of the latest
Annual Report
FCR
Feed Conversion Ratio – the
amount of feed (in kilograms)
required to grow 1 kilogram of
fish weight
FMCG
Fast moving consumer goods
FY
Financial Year
G&G
Gilled and Gutted weight.
Note that all volumetric
information presented is on
a gilled and gutted basis unless
otherwise stated
GAAP
New Zealand Generally Accepted
Accounting Practice
Group
New Zealand King Salmon
Investments Limited and its
subsidiaries
IPO
Initial Public Offering
MT
Metric Tonnes
New Zealand King Salmon
New Zealand King Salmon
Investments Limited
N PAT
Net profit after tax, also reported
as net profit for the period in our
published financial results
NZ IAS
New Zealand equivalent to
International Accounting Standards
NZ IFRS
New Zealand equivalents to
International Financial Reporting
Standards
NZX
New Zealand Stock Exchange
Pro-Forma Operating EBITDA
Pro-Forma Operating EBITDA refers
to earnings before interest, tax,
depreciation and amortisation, after
allowing for pro-forma adjustments;
being the exclusion of fair value
adjustments relating to the fair
value gains or losses arising from the
application of NZ IAS 41 Agriculture
and NZ IAS 2 Inventories and the
early foreign currency contract close
outs. Pro-Forma Operating EBITDA is
a non-GAAP profit measure.
143New Zealand King SalmonAnnual Report FY25 — Financial StatementsContents
---
FY25 INVESTOR PRESENTATION
FY25 FINANCIAL RESULTS
FY25 INVESTOR PRESENTATION
DISCLAIMER
1
The information in this presentation has been prepared by New Zealand King Salmon Investments Limited with due care and attention. However, to the maximum extent permitted by law, neither
New Zealand King Salmon Investments Limited nor any of its directors, employees, shareholders nor 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 supplied in connection with it.
This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current expectations, estimates
and assumptions and are subject to a number of risks, uncertainties and assumptions. There is no assurance that results contemplated in any projections and forward-looking statements in this
presentation will be realised and any forward-looking statements are subject to material adverse events, significant one-off expenses or other unforeseeable circumstances. As such, actual results
may differ materially from those projected in this presentation. No person is under any obligation to update this presentation at any time after its release to you or to provide you with further
information about New Zealand King Salmon Investments Limited.
Our results are reported under NZ IFRS. This presentation includes non-GAAP financial measures which are not prepared in accordance with NZ IFRS. The non-GAAP financial measures used in
this presentation include:
•EBITDA. We calculate EBITDA by adding back (or deducting) depreciation, amortisation, finance expense / (income), and taxation expense to net earnings
•EBIT. We calculate EBIT by adding back (or deducting) finance expense / (income), and taxation expense to net earnings
•Pro-Forma Operating EBITDA refers to earnings before interest, tax, depreciation and amortisation after allowing for pro-forma adjustments as described in the Appendix to this document
We believe that these non-GAAP financial measures provide useful information to readers to assist in the understanding of our financial performance, financial position and returns. They should
not, however, be viewed in isolation, nor considered as a substitute for measures reported in accordance with NZ IFRS. Non-GAAP financial measures may not be comparable to similarly titled
amounts reported by other companies.
The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. Nothing in this presentation constitutes legal,
financial, tax or other advice. An investor should, before making any investment decisions, consider the appropriateness of the information in this presentation, and seek professional advice,
having regard to the investor’s objectives, financial situation and needs.
This presentation is solely for use of the party to whom it is provided.
FY25 INVESTOR PRESENTATION
PRESENTERS
2
Carl Carrington
Chief Executive Officer
Ben Rodgers
Chief Financial Officer
Grant Lovell
GM Aquaculture
FY25 INVESTOR PRESENTATION
EXECUTIVE SUMMARY
3
FY25
•FY25 Net profit after tax of $13.4m (FY24 $28.5m). When compared to the prior comparable period, GAAP results have been impacted by non-cash adjustments
relating to a fair value loss on biological assets/inventory of $7.7m (FY24 gain of $15.8m) and a smaller contribution of $4.3m (FY24 $6.7m) from the continued
unwind of the early close out of FX contracts which occurred in FY21 and FY22
•The FY25 Pro-Forma EBITDA, which is both our preferred performance measure and the profit measure that NZKS guides to, was a profit of $29.7m (FY24 profit of
$24.5m)
•This was the third summer under the adapted farming strategy. Unfortunately, higher than expected seafarm mortality, coupled with lower than anticipated growth
rates over summer, will result in a reduced harvest for FY26. Although the mortality is well below the FY21/FY22 summer, this highlights we still have work to do to
improve fish health outcomes
•Focus continues to be on optimising earnings to increase the self-funding component of the Blue Endeavour (BE) project
Blue
Endeavourupdate
•Significant five-year funding partnership of up to $11.7m was entered into with the New Zealand Government under the Sustainable Food and Fibre Futures (SFF
Futures) fund
•Baseline monitoring of the site continues through to 31 May 2025
•The key BE open ocean infrastructure builds are underway. The pens are under construction in Picton, whilst the mooring grid components are in transit to NZ. The
pilot service vessel is under construction, with expected delivery August/September 2025
•Pilot farm fish are currently being grown out at Tentburn, ready to transfer to the nursery farm (Waihinau) in April 2025. They will then be towed to the BE site in
October 2025
•Pilot RAS detailed design underway (Tentburn site)
Balance sheet
•Balance Sheet remains strong with net cash on hand ~$50m
•FY26 Capex forecast at ~$21m. Capex excluding the BE pilot is forecast at ~$9m. Projects are focussed on stay in business capex including replacement nets,
moorings, machinery and site works. FY26 BE pilot capex estimatedat $12m (includes pens, nets, moorings, service vessel and commencement of work on RAS
pilot)
FY26 guidance
•Pro-forma EBITDA guidance range of $15m to $24m
•FY26 expected harvest ~5,900 MT to 6,300 MT
FY25 INVESTOR PRESENTATION
FY25 PERFORMANCE
01
4
FY25 INVESTOR PRESENTATIONFY25 INVESTOR PRESENTATION
FY25 OPERATIONAL HIGHLIGHTS
$211
FY25
REVENUE OF
MILLION
6,778
METRIC TONNES
HARVESTED
DURING FY25
32%
GEOGRAPHIC SPREAD
OF REVENUE
3%
44%
11%
EUROPE
5%
3%
NORTH
AMERICA
ASIA excl. JAPAN & CHINA
JAPAN
NEW
ZEALAND
AUSTRALIA
5
2%
CHINA
(7.1)
(73.2)
1.9
28.5
13.4
FY21FY22FY23FY24FY25
(7 months - Jan)(Jan)(Jan)(Jan)(Jan)
FY25 GAAP NPAT
10.9
8.7
(2.7)
24.5
29.7
FY21FY22FY23FY24FY25
(7 months - Jan)(Jan)(Jan)(Jan)(Jan)
FY25 PRO-FORMA OPERATING EBITDA
95
175
167
187
211
FY21FY22FY23FY24FY25
(7m -(Jan)(Jan)(Jan)(Jan)
FY25 INVESTOR PRESENTATION
SOLIDIFYING CORE AND EXECUTING GROWTH
1.Turning Strategy into Action
Ensuring a solid strategy and action plan is backed by the organisational capability to implement
2. Sequencing Investments for Growth
Making intentional investments in the right things, in the right order and at the right time
•Blue Endeavour pilot farm
•Pilot RAS
•Greenfield processing
•Market development – geographies and customers
3. Managing Risk to Support Growth and Reduce Volatility
•Ensuring we have suitable risk mitigation in place to support growth and reduce volatility
•Piloting new technologies – cautious approach to prove-up before scale-up
•Hydrology assessments – Tākaka / Tentburn
•Investing in breeding research, vaccine deployment and diet trials to improve salmon resilience in warmer waters
4. Supportive Government Policy
Resource Management (Extended Duration of Coastal Permits for Marine Farms) Amendment Bill 2024 – extension of
farming licenses by 20 years out to 2050 maximum
5. Future Farming - A Blueprint to Accelerate Salmon Farming in Aotearoa
A significant five-year partnership (funding up to $11.7m) was entered into with the New Zealand Government under the
SFF Futures fund. This is to support the piloting of the technologies that will underpin expansion into Open Ocean
Aquaculture (Blue Endeavour)
6
FY25 INVESTOR PRESENTATION
STRENGTHENING OUR BRAND FOCUS
We continue to strengthen our three core consumer brands - Ōra King, Regal, and Omega Plus, through innovation,
market expansion, and meaningful partnerships that engage both consumers and industry leaders
Giving customers a reason to engage with our brands through:
•Promotingour partners through the Ōra King ambassador chef programme and ourRegal ambassador Al Brown, to
drive credibility and build organic content
•Promotion of Regal in China with new key retailers to support our future market development strategy
•Building on our specialty retail strategy for Omega Plus in the domestic market and expanding our product offerings
to target different segments, such as the launch of our new Equine Oil into NZ through selected breeders
Key Brand Highlights
•We harvested our record Ōra King TYEE this year at an impressive 23.4kg
•Ōra King was showcased at an exclusive industry event in Las Vegas as part of the F1 series with Ambassador
Liwei Liao
•Regal had an impressive uplift over the summer period across social channels compared to FY24
1
, with 25.7 million
views across Instagram and Facebook, and a YOY increase of 342% for reach. We attribute this growth to the
promotion of our partnership with Chef Al Brown
1
‘Meta Insights’ data for periods September 23 – January 24 and September 24 – January 25
7
FY25 INVESTOR PRESENTATION
SALES PERFORMANCE
Continuing to target price and market optimisation
First half sales
Second half sales
The Foodservice sector remained steady and is still in a rebuilding phase. The
Retail sector was strong, and we saw overall volumes grow by over 10%. Most of
the growth was in the second half of the year as supply increased
•North American demand continues its strong growth from H1. Foodservice
remains buoyant and some additional retail sales provided growth in H2
•Retail growth continues in New Zealand. The Foodservice sector remains
quite challenging with a slow recovery. Despite those challenges, New
Zealanders still seek out premium protein and we saw over 5% growth over
the prior year
•The Australian market has shown very solid growth. Retail continues to grow
in strength. The Foodservice channel has been very resilient and supportive
of our product in the face of some headwinds in that sector
•Asia markets (excl. Japan) remain quite steady with the majority of growth in
performance coming from China. We continue to work together with our
importer partner in China to build our brand and in-market relationships. We
are seeing solid growth in this market which contributed to 25% growth over
FY24 volumes in this region
•Japan has been steady in volume over the past year. This is encouraging as
increasing prices have seen no deterioration in demand
•The European market has remained flat in both Foodservice and Retail at
the premium end of the market
Domestic Market (MT)
North America (MT)
Australia (MT)
Europe (MT)
Japan (MT)
Asia (MT)Excludes Japan
8
FY25 INVESTOR PRESENTATION
FISH PERFORMANCE
•The start of FY25 completed the second full year of theadapted farming strategy, which involves having
the majorityof biomass in the cooler Tory Channel over the warmer months, before towing to the Queen
Charlotte Sound. As noted during 1HY25, the positive biological performance shown in the first summer
period (2022-23), including lower summer mortality, was repeated over the 2023-24 summer
•FY25 harvest volumes were just under 6,800MT which is within the range of expected harvest volumes.
Pleasingly, FY25 alsosaw an overall increase in average harvest size
•Unfortunately, higher than expected seafarm mortality, coupled with lower than anticipated growth rates
over the most recent summer period (2024-25) will result in a reduced harvest for FY26. Although the
mortality is well below the FY22/FY23, being the 2021-22 summer period, this highlights theneed to be
constantly working to improve fish performance outcomes
•Feed prices for the full year were slightly above FY24 levels. Our most recent feed prices (repriced
quarterly) have seen a decrease heading into FY26. Our trial pen facility was completed in December
2024 with the first feed trial underway from Jan 2025. This facility is crucial to our ongoing diet
development work with our feedsupply partners
9
SoundFarmHarvested Volume (G&G MT)
FY25FY24
Queen Charlotte
Ruakākā
834962
Ōtānerau
818700
Tory Channel
Clay Point1,1821,996
Te Pangu2,1311,128
Ngāmahau1,437886
Pelorus Sound
Waitātā359533
Freshwater1733
Total6,7786,238
Biological Performance
FY25
FY24
% chg.
Harvest Volume (G&G MT)6,7786,2389%
Average Harvest Weight (G&G
Kg)
3.893.2420%
Feed Conversion Ratio (FCR)
1.78 1.74 (2%)
Closing Livestock Biomass4,8795,379(9%)
Feed Cost ($ / Kg of feed)
3.41 3.38 1%
FY21 FY22 FY23 FY24 FY25
Seafarm Mortality Biomass (MT) by FY
FY25 INVESTOR PRESENTATION
•NZKS’base year of carbon emissions for Scope 1, 2 and 3was established in FY24. NZKS is in the
process of having FY25’s Scope 1, 2 and 3 carbon emissions assured.
•NZKS’ second Climate-Related Disclosures for FY25 will be released in May 2025
•Commenced work with a third party to explore reduction opportunities for Scope 1 and 2 emissions
•During FY25, NZKS completed New Zealand’s first in-house aquaculture finfish ensilage plant,
transforming by-products and diverting organic waste from landfill
•NZKS has undertaken comprehensive hydrology mapping to better understand our climate risks at
freshwater sites
•NZKS participated in the most recent XLab programme, which served as the catalyst for the high-
value protein recovery project. This new process captures and uses the kidney line protein as a key
ingredient in nutrient-rich fish meal for non-salmon applications.
•Became a partner of The Aotearoa Circle, with involvement in developing the Seafood Nature,
Climate and Te Ao Māori Scenarios
•Submission of NZKS’ fourth Modern Slavery Report (Australian Modern Slavery Act 2018)
We continue to progress on our sustainability journey
10
NZKS SUSTAINABILITY FOCUS
FY25 INVESTOR PRESENTATION
FY25 RESULTS
11
02
FY25 INVESTOR PRESENTATION
FY25 HEADLINE FINANCIAL PERFORMANCE
Revenue – Benefited from an increase in volumes sold (increase in harvested
biomass and a sell down/reduction in value of finished goods on hand) and price
increases (reflecting the recovery of inflationary pressure on input costs feed and
people)
Gross Profit – GAAP Gross Profit was negatively impacted by fair value
movements when compared to the prior year (this is in line with the decrease in
forecasted harvestable biomass). Excluding fair value movements (Pro–Forma)
Gross Profit improved on the PY due to the revenue growth, being partially offset
by increases to the directly attributable input costs (feed, people and freight)
EBITDA – In addition to the gross margin explanation above. EBITDA on a GAAP
basis was negatively impacted by an increase in overhead costs. Overhead costs
have increased due to investments in capability to deliver both BAU improvements
and growth projects. The decrease in other income on a GAAP basis is
attributable to a decrease in the continued unwind of the early close out of FX
contracts from FY21/FY22
NPAT – On a GAAP basis it has decreased on the prior comparable period as a
result of the decrease in EBITDA and an additional impact to tax expense due to
buildings no longer being depreciated
1
A full reconciliation between GAAP and Pro-Forma results is shown on pages 20 and 21 of this presentation
2
FY24 GAAP Gross Profit has been restated due to a change in presentation in the financial statements. Depreciation
associated with growing and processing salmon is now included in cost of goods sold
12
Group Financial Performance
GAAPPro-Forma
1
NZ$000sFY25FY24% chg.FY25FY24% chg.
Volume Sold (t)
6,582 5,899 12%6,582 5,899 12%
Revenue
210,993 187,106 13%210,993 187,106 13%
Gross Profit
2
45,365 59,052 (23%)59,874 49,591 21%
Gross Profit %
2
22%32%28%27%
EBITDA26,384 46,990 (44%)29,729 24,475 21%
EBITDA %13%
25%14%13%
EBIT18,247 39,405 (54%)21,592 16,890 28%
NPAT
13,359 28,452 (53%)15,767 12,241 29%
FY25 INVESTOR PRESENTATION
PRO-FORMA
1
EBITDA COMPARISON
•Revenue is up primarily due to volume growth and continued focus on optimisation of product and customer mix choices. One initiative driving this is the optimisation of whole fish. FY25 has seen a small
uplift in the proportion of biomass sold as whole fish, and this will continue to be a focus area. Despite having a lower price point whole fish sales generally allow NZK to better leverage its strong brand
position to generate a higher margin
•Cost of goods is up on prior year – consistent with increased volume. While we continue to experience some inflation pressures the change in sales mix (referred to above) is helping minimise the
inflationary components in COGS
•Mortality The slight increase in mortality from 1HY24 reflects the increase in biomass on hand for FY25. FY25 mortality was within Management's expectations
•Corporate costs are up on prior year. This reflects increased compliance costs as well as a continued investment in the back office to build capability ahead of growth, this investment is likely to continue
into FY26. Key areas of expenditure included:
•Increased investment in advertising and promotional spend
•Investments in capability as the business builds for the Blue Endeavour pilot. This includes additional professional services spend to support decision making around supporting infrastructure (i.e.
Greenfield site design)
•The compliance landscape continues to require increased investments across finance, technology, legal and sustainability functions
1
Refer to pages 20 & 21 for full reconciliation between GAAP and Pro-Forma results
13
24.5
21.7
2.1
(14.3)
2.1
(1.4)
(4.8)
(0.2)
29.7
FY24Increased Sales
Volumes
Price/Customer/
Product Mix
COGS - Volume
Increase
COGS InflationMortalityCorporate CostsOther IncomeFY25
0.0
10.0
20.0
30.0
40.0
50.0
60.0
FY25 INVESTOR PRESENTATION
NZKS’ balance sheet remains strong with net cash on hand of $50.7m. This balance sheet provides NZKS
with a strong platform to invest in both the existing operations and fund the Blue Endeavour pilot
While profitability is the main contributor to the growth in cash on hand other areas have also contributed:
•The decrease of Inventory was predominately due to:
oa decrease in feed on hand (PCP yearend balance was impacted by a change in supplier terms)
– this also contributed to a reduction in the payables balance
oa reduction in finished goods on hand
•NZKS invested ~$10.5m in capex for FY25. Major capex projects included (B/E Service vessel and
pens, new processing machinery, nets, ensilage plant and a new hatchery grading tower)
•Consistent with recent years, capex spend was below the guidance provided of ~$14m (excluding
B/E pilot spend) . The shortfall against budget was attributable to benefiting from the Marine
Consents ExtensionAct (avoiding some consenting costs) and deferment of some processing capex
as Management continue to investigate the economics of a new factory
•NZKS has utilised available tax losses and is now in a tax paying position, with provisional tax paid
in FY26
•The decrease in biological assets (outside of fair value adjustments) reflects a decrease in biomass
at sea. The decrease in biomass at sea is attributable to having slightly less and slightly smaller
(overall average weight ) fish when compared to 31 January 2024.
BALANCE SHEET
1
Cash and equivalents include $3m term deposits with maturities > 4 months (FY24: $6m)
14
Group Financial Position
Jan-25Jan-24
NZ$000sAudited Audited
Current Assets
Cash and equivalents
1
52,738 26,908
Receivables
17,262 18,427
Inventories
27,190 37,059
Biological Assets
88,145 94,460
Derivative financial assets
1,016 976
186,351 177,830
Non-current Assets
Property, plant & equipment52,427 48,335
Other13,418 12,780
65,845 61,115
Total Assets252,196 238,945
Current Liabilities
Loans (external)4,505 3,417
Lease Liabilities1,834 1,028
Payables13,456 16,071
Other16,757 9,098
36,552 29,614
Non-Current Liabilities
Loans (external)- 2,000
Lease Liabilities8,647 5,872
Other9,966 11,164
18,613 19,036
Total Liabilities55,165 48,650
Net Assets197,031 190,295
Net Cash / (Debt)50,738 24,158
FY25 INVESTOR PRESENTATION
FY26 & BLUE ENDEAVOUR
UPDATE
15
03
FY25 INVESTOR PRESENTATION
FY26 GUIDANCE UPDATE
$15m-$24m*
FY26 Guidance
•FY26 guidance range provided as $15m – $24m*
•Our FY26 guidance is a result of:
oMortality: NZKS is currently experiencing elevated mortality across several sites, impacting the
FY26 harvest forecast. This is now expected to be between 5,900MT and 6,300MT. This has a
compounding effect on EBITDA through lost sales, cost of mortality and the deoptimaisation of
the remaining harvest all of which is expected to remove ~$11m from earnings
oForeign Exchange: The currently favourable US dollar exchange rate for exporters provides
margin upside, given sales concentration to this market, albeit the upside is offset by the
hedged position being unfavourable to spot rates
oFinished Goods optimisation: There was a strong focus on reducing stock on hand in FY25
•Despite the impact of elevated mortality impacting both FY26 harvest and earnings, the FY26
guidance and supporting balance sheet provide a strong platform from which to develop and fund
future growth strategies
•FY26 Capex forecast at ~$21m
oBlue Endeavour Pilot Project ~$12m (includes pens, nets, moorings, service vessel and
commencement of work on RAS pilot)
oStay in business Capex of ~$9m consistent with previous guidance around BAU capital needs
(replacement nets, moorings, machinery and site works)
•On top of the capex above, there is an increase in working capital for the BE Pilot farm of ~$5m. This
will result in an estimated cash outflow of $7m* (FCF of +5m) for FY26
•The Board has reconfirmedthatdividends will remainon hold for the foreseeablefuture as NZKS
develops theBlue Endeavour project
*Neither this or the cashflow forecasts account for the recently announced SFF Futures fund.
16
FY25 INVESTOR PRESENTATION
SUMMER FISH PERFORMANCE
•Summer remainsthe most challenging period for NZKS
•The current summer is not a significant outlier in our historical
context
•The strategy changes and continued fish performance focus
have provided a level of resilience
oAvoiding holding fish in our warm water sites over
summer
oVaccine development
oThermotolerance breeding trials
oDiet modifications and trials
oInvestments in freshwater (smolt)
17
01 Dec08 Dec15 Dec22 Dec29 Dec
05 Jan12 Jan19 Jan26 Jan
02 Feb09 Feb16 Feb23 Feb
02 Mar09 Mar16 Mar23 Mar30 Mar
06 Apr13 Apr20 Apr27 Apr
04 May11 May18 May25 May
01 Jun08 Jun15 Jun22 Jun
Mortality Biomass
Summer Performance over last 7 years
2017 / 182018 / 192019 / 202020 / 21
2021 / 222022 / 232023 / 242024/25
FY25 INVESTOR PRESENTATION
BLUE ENDEAVOUR- PILOT UPDATE
•Significant funding partnership of up to $11.7m signed with the New Zealand Government under the Sustainable Food and Fibre Futures (SFF Futures) fund
•Baseline monitoring – underway continues to end of May 2025
•The service vessel is currently under construction in Vietnam – expected delivery August/September 2025
•Pens under construction (scheduled to be moored at Waihinau April 2025)
•Anchor installation (scheduled for June 2025)
•The fish for the first Blue Endeavour pilot harvest are now at our Tentburn facility, being grownand ready for transfer to the inshore nursery site (Waihinau) in April. Fish are then scheduled
to be towed to the BE site in late October 2025
18
Today
FY25 INVESTOR PRESENTATION
APPENDICES
04
19
FY25 INVESTOR PRESENTATION
FY25 RECONCILIATION BETWEEN GAAP AND PRO-FORMA FINANCIALS
20
NZD 000s
Statutory Financial
Statements
DepreciationFair Value AdjustmentsEarly FX Close-outs
Pro-Forma Operating
Financial Information
Revenue
210,993 210,993
Cost of goods sold(193,039)6,834 35,086 (151,119)
Fair value gain / (loss) on biological transformation
27,411 (27,411)-
Gross Profit45,365 6,834 7,675 - 59,874
Other operating income5,475 (4,330)1,145
Overheads
Sales, marketing and advertising(16,814)
152 (16,662)
Corporate expenses(13,796)
1,151 (12,645)
Other expenses(1,983)(1,983)
Add back: Depreciation and amortisation
8,137 (8,137)
EBITDA
26,384 -7,675 (4,330)29,729
Deduct: Depreciation and amortisation(8,137)(8,137)
EBIT
18,247 -7,675 (4,330)21,592
Finance income1,466 1,466
Finance costs(619)(619)
Net finance costs
847 - - 847
Profit / (loss) before Tax19,094 -7,675 (4,330)22,439
Income tax (expense) / credit(5,735)(2,149)1,212 (6,672)
Net Profit / (loss) for the Year
13,359 -5,526 (3,118)15,767
FY25 INVESTOR PRESENTATION
21
FY24 RECONCILIATION BETWEEN GAAP AND PRO-FORMA FINANCIALS
NZD 000s
Statutory Financial
Statements
DepreciationFair Value Adjustments
1
Early FX Close-outs
Pro-Forma Operating
Financial Information
Revenue187,106 187,106
Cost of goods sold
1
(173,172)6,326 29,331 (137,515)
Fair value gain / (loss) on biological transformation
1
45,118 (45,118)-
Gross Profit59,052 6,326 (15,787)- 49,591
Other operating income8,065 (6,728)1,337
Overheads
Sales, marketing and advertising(15,004)151 (14,853)
Corporate expenses(11,840)1,108 (10,732)
Other expenses(868)(868)
Add back: Depreciation and amortisation7,585 (7,585)-
EBITDA46,990 - (15,787)(6,728)24,475
Deduct: Depreciation and amortisation(7,585)(7,585)
EBIT39,405 -(15,787)(6,728)16,890
Finance income1,051 1,051
Finance costs(396)(396)
Net finance costs655 655
Profit / (loss) before Tax40,060 -(15,787)(6,728)17,545
Income tax (expense) / credit(11,608)4,420 1,884 (5,304)
Net Profit / (loss) for the Year28,452 - (11,367)(4,844)12,241
1
FY24 GAAP Gross Profit has been restated due to a change in presentation in the financial statements (Depreciation associated with growing and processing salmon is now included in ‘Cost of goods sold).
There has also been a change in the fair value adjustment allocations between line items ‘Cost of goods sold’ and ‘Fair value gain / (loss) on biological transformation’ following a change in the valuation model
used. There is no change to reported EBITDA or NPAT on a GAAP or Pro-Forma basis.
FY25 INVESTOR PRESENTATION
EXISTING SEAFARM RESOURCE CONSENTS EXTENDED
FarmsRegionExpiry dateStatus
RuakākāQueen Charlotte2044Active
ŌtānerauQueen Charlotte2044
Active
Forsyth BayPelorus2044Fallow
WaihinauPelorus2044Active
1
Crail BayPelorus2044Fallow
Clay PointTory Channel2050
Active
Te PanguTory Channel2050
Active
WaitātāPelorus2050
Active
NgāmahauTory Channel2050
Active
KopāuaPelorus2050Fallow
Blue Endeavour
Cook Strait2057Active
1
•The Marine Consents ExtensionAct came into force inearlySeptember 2024. This has
provided certainty of tenure for NZKS'resource consents
•Five consents (Ruakākā, Ōtānerau, Forsyth Bay, Waihinau, Crail Bay) that were due for
expiry at the end of 2024, now expire in 2044
•TheAct has also extended the duration of Waitātā, Kopāua, Ngāmahau, Clay Point and
Te Pangu throughto 2050
•The conditions of consent forthe oldest farms will to be updated. NZKS willwork with the
Marlborough District Councilon this, and this process may take some time
•The extension of tenure of the Pelorus sites is important in relation to the development of
the Blue Endeavour opportunity. The plan is to utilise these sites as nursery farms and
as a harvest location for our Blue Endeavour operation. This will begin in April 2025 with
Waihinau receiving thefirst stock for Blue Endeavour
22
1
NZKS intends to transfer smolt to Waihinau in April 2025, these fish will then be transferred to the Blue Endeavour site in October 2025
FY25 INVESTOR PRESENTATION
APPENDIX – GLOSSARY OF TERMS
FY26Financial results for the 12 months from 1 February 2025 to 31 January 2026
FY25Financial results for the 12 months from 1 February 2024 to 31 January 2025
FY24Financial results for the 12 months from 1 February 2023 to 31 January 2024
FY23Financial results for the 12 months from 1 February 2022 to 31 January 2023
FY22Financial results for the 12 months from 1 February 2021 to 31 January 2022
FY21Financial results for the 7 months from 1 July 2020 to 31 January 2021
EBITDAEarnings before interest, tax, depreciation and amortisation
FCRFeed Conversion Ratio – the amount of feed (in kilograms) required to grow 1 kilogram of fish weight
G&GGilled and gutted. Note that all volumetric information presented is on a gilled and gutted basis unless otherwise stated
GAAPGenerally Accepted Accounting Practice
MTMetric tonnes
NPATNet profit after tax, also reported as net profit for the period in our published financial results
NZKSNew Zealand King Salmon Investments Limited
Pro-Forma Operating EBITDA
Pro-Forma Operating EBITDA refers to earnings before interest, tax, depreciation, amortisation after allowing for pro-forma adjustments as described in the
Appendix to thisdocument. Pro-Forma Operating EBITDA is a non-GAAP profit measure that NZKS provides market guidance against
RASRecirculating Aquaculture System
23
FY25 INVESTOR PRESENTATION
UNDERSTANDING OUR GAAP RESULTS
Pro-Forma Operating EBITDA refers to earnings before interest, tax, depreciation and amortisation, after allowing for Pro-Forma adjustments; being the exclusion
of fair value adjustments relating to the fair value gains or losses arising from the application of NZ IAS 41 Agriculture and NZ IAS 2 Inventories and the early
foreign currency contract close outs.
The impact of NZ IAS 41 Agriculture and NZ IAS 2 Inventories
Our GAAP results are impacted by fair value gains or losses arising from the application of NZ IAS 41 Agriculture and NZ IAS 2 Inventories. The impact of these
standards are explained below:
Fair Value under NZ IAS 41 Agriculture and NZ IAS 2 Inventory
When we record a change in biomass at sea, or where the expected future profit we realise on fish that we sell changes, these standards require us to
quantify and recognise the gain or loss in the current period. This applies to both biomass at sea and inventories of finished products.
Our Statement of Financial Position shows biological assets at their fair value. Pro-Forma Operating Financial Performance removes gains / losses associated
with the application of these standards.
24
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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