New Zealand King Salmon Investments Limited (NZKSF) Q2 2026 Earnings Call Transcript

Operator

Thank you for standing by, and welcome to the New Zealand King Salmon Half Year Results Announcement.

[Operator Instructions]

I would now like to hand the conference over to Mr. Carl Carrington, Chief Executive Officer. Please go ahead.

Carl Carrington
Chief Executive Officer

Good morning, everyone. Welcome to the half year results for New Zealand King Salmon, we’ll get into the presentation now. First of all, just the standard disclaimer, if everybody could read that in their own time to be familiar with the disclaimer we have there. Thank you. .

Presenting today, myself, Ben Rodgers, our CFO; and Grant Lovell, our team of Agriculture be the team on the call today. Let’s get into the summary of the results.

So the first half net profit after tax result was a loss of $20.8 million. This GAAP result was predominantly impacted by noncash adjustments relating to a fair value write-down in the biological assets of $22.5 million after tax. The driver of the write-down relates to the summer biomass challenges where we experienced slightly elevated mortality, but more impactful was the reduced biomass growth.

This had 2 impacts: the first is the reduction in the fair value of biological assets; and the second flows from the decision to reduce harvest volumes from April through to October in order to rebuild the biomass.

The pro forma EBITDA, which is the metric which management prefers to put more emphasis upon reflects the underlying earnings and was a profit of $5.7 million compared with $13.5 million in the prior year period. This number was predominantly impacted by