Latest news with #NewZealandKingSalmon
RNZ News
5 days ago
- Business
- RNZ News
NZ King Salmon reduce harvest due to small, 'stressed' fish
New Zealand King Salmon said its fish are not eating as much as usual. Photo: Supplied Fish farmer New Zealand King Salmon says its fish are not eating as much as usual, forcing it to reduce harvest volumes for about four months by as much as 17 percent. The company said this year's harvest would shrink to between 5200 and 5400 metric tonnes. It also cut its full year underlying profit guidance by about half to between $6 million and $12 million for the end of January. King Salmon chief financial officer Ben Rodgers said the fish were smaller than expected and needed time to fatten up. "One thing we see with King Salmon is they are a species which is easily stressed, and when they get stressed they can have a suppressed appetite," Rodgers said. "So, they have still been eating or feeding, but just not as much as we thought they would based on a historical feed out rates." He said the aim was to increase the average fish size, with a view to protecting future harvests beyond 2027. "It is a tough decision to make, but we need to reduce our harvest at some stage." King Salmon expected harvest volumes to begin to recover by September 2025. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Yahoo
24-05-2025
- Business
- Yahoo
New Zealand King Salmon Investments' (NZSE:NZK) Returns On Capital Not Reflecting Well On The Business
Ignoring the stock price of a company, what are the underlying trends that tell us a business is past the growth phase? Typically, we'll see the trend of both return on capital employed (ROCE) declining and this usually coincides with a decreasing amount of capital employed. Ultimately this means that the company is earning less per dollar invested and on top of that, it's shrinking its base of capital employed. And from a first read, things don't look too good at New Zealand King Salmon Investments (NZSE:NZK), so let's see why. Our free stock report includes 3 warning signs investors should be aware of before investing in New Zealand King Salmon Investments. Read for free now. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for New Zealand King Salmon Investments, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.06 = NZ$13m ÷ (NZ$252m - NZ$37m) (Based on the trailing twelve months to January 2025). Therefore, New Zealand King Salmon Investments has an ROCE of 6.0%. Ultimately, that's a low return and it under-performs the Food industry average of 9.6%. Check out our latest analysis for New Zealand King Salmon Investments Above you can see how the current ROCE for New Zealand King Salmon Investments compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for New Zealand King Salmon Investments . We are a bit worried about the trend of returns on capital at New Zealand King Salmon Investments. To be more specific, the ROCE was 9.8% five years ago, but since then it has dropped noticeably. And on the capital employed front, the business is utilizing roughly the same amount of capital as it was back then. This combination can be indicative of a mature business that still has areas to deploy capital, but the returns received aren't as high due potentially to new competition or smaller margins. If these trends continue, we wouldn't expect New Zealand King Salmon Investments to turn into a multi-bagger. All in all, the lower returns from the same amount of capital employed aren't exactly signs of a compounding machine. We expect this has contributed to the stock plummeting 75% during the last five years. With underlying trends that aren't great in these areas, we'd consider looking elsewhere. One final note, you should learn about the 3 warning signs we've spotted with New Zealand King Salmon Investments (including 1 which is potentially serious) . While New Zealand King Salmon Investments isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
