New Zealand King Salmon Investments (ASX:NZK) used its tenth annual shareholders’ meeting to outline an eight-month transition reporting period that delivered a loss, while management and the board emphasized operational stabilization efforts and a set of “transformational” growth initiatives centered on a proposed wellboat lease and the Blue Endeavour open-ocean pilot.
Transition reporting period: lower harvest volumes drove earnings decline
Chair Mark Dewdney said the reporting period from 1 February to 30 September 2025 reflected the company’s move to a 30 September balance date, which he said would align reporting with a time when performance is “most predictable.” He acknowledged the “headline financial result” was disappointing.
Management attributed the decline primarily to a reduced harvest. Dewdney said harvest volumes were 3,315 tons during the eight-month period, versus 6,778 tons in the prior 12 months. CEO Carl Carrington said biological challenges starting in March 2025 led to subdued feeding, slower biomass growth for about four months, and a deliberate harvest reduction from April through late October to rebuild biomass. Carrington said the outcome included lower revenue, reduced overhead recovery, higher cost of goods sold, and weaker earnings despite gains in pricing and product mix.
Carrington added that the period’s NPAT loss was “strongly influenced” by reduced biomass inventory, which affected the fair value of livestock on the balance sheet versus the prior year.
Markets and pricing: North America remains largest; China small but growing
Carrington said North America remained the company’s largest market at 41% of revenue. New Zealand represented 34%, Australia 10%, and China 5%, which he said had grown. He said Australia’s reduction reflected lower supply rather than weaker demand. Japan was described as an important market for long-standing relationships and a channel capable of taking significant volumes, though achieving global pricing parity there “can be challenging.”
During Q&A, management was asked about US tariffs. Aquaculture General Manager Grant Lovell said the company had implemented a price increase notification in December 2024 that coincided with the start of tariffs, while supply was simultaneously reduced. He said a later additional tariff increase also occurred, but that current selling rates were “either equal to or higher than pre-tariff times,” and that the company was fully oversubscribed during allocation periods.
Balance sheet, capital spending, and dividends
Dewdney said the company had net cash on hand of NZD 46.6 million, which he characterized as supporting funding for planned growth initiatives. Carrington said capital expenditure for the eight-month period was forecast at about NZD 14 million, including about NZD 2.7 million of non-Blue Endeavour “stay-in-business” spending (nets, moorings, machinery, and site works).
The board also reaffirmed that dividends will remain on hold for the foreseeable future, citing significant work and expenditure ahead.
Wellboat proposal: described as “transformative” and central to scaling
A key focus of the meeting was the proposed lease of a wellboat, which management described as a specialized live-fish transport vessel and “floating aquarium.” Carrington said the wellboat is intended to improve fish welfare, grading, and biosecurity, support single year class management and site fallowing, and reduce risk relative to the company’s current tow model for fish movements.
Management said that, following changes to several high-flow site conditions with the Marlborough District Council, the removal of feed staging requirements could allow earlier access to feed discharge capacity of up to 5,000 tons across inshore operations. Carrington said this additional capacity underpinned the business case for the wellboat, and he said the economics could stack up on inshore farms alone.
According to Carrington, the wellboat could unlock the potential for an additional 2,000 tons of annual harvest within the existing inshore footprint, which he said could represent NZD 60 million or more in additional revenue. He also said the first year could involve more than 100 wellboat movements, providing operational flexibility not possible under current methods.
The company disclosed it had entered into, subject to shareholder approval, a long-term lease with Sølvtrans, a Norwegian wellboat operator, for the vessel to be named Ronja King. Carrington said the lease model provided flexibility to upsize later without committing to an outright purchase. He also stated that annual lease payments would be funded from working capital and cash flow.
In Q&A, management said wellboats are typically leased globally, and that the arrangement is framed as leasing a “service” with experienced staff. A representative indicated that a comparable “buy” case could imply about a two-year payback on 2,000 tons, but emphasized the lease model’s risk reduction and the operator’s lower cost of capital.
Blue Endeavour and other infrastructure investments
Management described the Blue Endeavour open-ocean project as a major step, with Dewdney calling it a “New Zealand first” ocean salmon pilot farm. Carrington said trial pens had been assembled and towed to Waikawa, with mooring grid installation underway at 31 of 44 moorings installed. He said 36 moorings were needed to proceed with the first two pens, and that delays meant Blue Endeavour fish spent summer at inshore farms but were growing well and expected to be moved once pens were in place.
The company also highlighted several supporting investments, including:
- Purchase of a future factory site in Cloudy Bay Business Park in Blenheim for NZD 8.1 million (completed October 2025) to support future processing needs beyond the current Bullen Street facility, which Carrington said is nearing sustainable capacity of about 9,000 tonnes.
- Delivery of the MV Whakanui service vessel (received October), intended to support operations including feed logistics, monitoring, and personnel support.
- A feed storage and delivery contract with Port Marlborough linked to a planned 3,200 square meter warehouse to bring feed directly to Picton, which management said would eliminate several hundred truck trips annually from Nelson to Marlborough and reduce associated emissions.
On fish health and resilience, Carrington said summer had started well, with mortality and performance tracking positively and feed volumes strong. He outlined initiatives including summer diet trials (with the commercial summer diet costing 22% more), vaccine development work, access to therapeutics at high-flow sites if needed, pilot recirculating aquaculture system (RAS) work for king salmon, and thermotolerance breeding supported by the Cawthron Institute. Carrington said the company is using genomics to accelerate genetic gains, and he stated the work is not gene editing.
The meeting concluded with shareholders voting on four resolutions, including the wellboat transaction and the re-election of directors Jack Porus and Catriona Macleod, as well as authorizing the board to fix the auditor’s remuneration. The company said results would be released to the NZX later in the day.
About New Zealand King Salmon Investments (ASX:NZK)
New Zealand King Salmon Investments Limited, together with its subsidiaries, engages in the farming, processing, and sale of salmon products in New Zealand, North America, Australia, Japan, Europe, and internationally. It offers whole fish, fillets, raw portions, cold smoked, wood roasted, salmon and potato cakes, caviar, oil, kibble, and pet treats, as well as ready to cook options. The company sells its products under the Ora King, Regal, Southern Ocean, Omega Plus, and New Zealand King Salmon brands to chefs, consumers, retailers, and wholesalers.
Further Reading
- Five stocks we like better than New Zealand King Salmon Investments
- Energy Security Is Now National Security – Positioning Is Happening Now
- Gilder: Don’t Buy AI Stocks, Do This Instead
- 3 Signs You May Want to Switch Financial Advisors
- ATCX is Sitting on One of Brazil’s Largest Critical Minerals Portfolios!
- Why Q4 Could Destroy Your Wealth
