New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>We expect Sanford (SAN) to report positive traction across its divisions supported by continued strength in seafood prices, when it reports its 1H23 result on 22 May 2023</li><li>SAN has not provided interim or full year earnings guidance.</li><li>Key focus areas for investors are (1) signs of margin recovery in the mussel division, (2) cost pressures, (3) debt position, and (4) an update on its capital investment program. </li></ul>

We expect Sanford (SAN) to report positive traction across its divisions supported by continued strength in seafood prices, when it reports its 1H23 result on 22 May 2023SAN has not provided interim or full year earnings guidance.Key focus areas for investors are (1) signs of margin recovery in the mussel division, (2) cost pressures, (3) debt position, and (4) an update on its capital investment program. 

Sanford: 1H23 Preview — Catching the Tide

<ul><li>Sanford's (SAN) 1Q23 update indicates the recovery of the key mussel division is likely underway, while demand for salmon and wildcatch remains resilient in key markets.</li><li>There has been a material recovery in mussel pricing due to (1) rolling off lagged price contracts, and (2) product mix weighted towards higher value half-shell sales</li><li>Against our revised numbers, SAN currently trades at an undemanding one year forward PE multiple of ~13x, we continue to see value at current levels and remain OUTPERFORM.</li></ul>

Sanford's (SAN) 1Q23 update indicates the recovery of the key mussel division is likely underway, while demand for salmon and wildcatch remains resilient in key markets.There has been a material recovery in mussel pricing due to (1) rolling off lagged price contracts, and (2) product mix weighted towards higher value half-shell salesAgainst our revised numbers, SAN currently trades at an undemanding one year forward PE multiple of ~13x, we continue to see value at current levels and remain OUTPERFORM.

<ul><li>Sanford (SAN) has reported a mixed 1Q23 update showing strong average price growth across all divisions, but weaker volumes primarily in Mussels and Wildcatch.</li><li>While volumes are expected to recover in the Wildcatch division in 2Q23 (timing impacts), Mussel volumes remain challenging given labour constraints, primarily for the Havelock plant.</li><li>Whilst overall revenue is broadly in line with 1Q22, SAN has signalled that increased costs for fuel, freight, salmon feed and labour may partially offset price growth.</li></ul>

Sanford (SAN) has reported a mixed 1Q23 update showing strong average price growth across all divisions, but weaker volumes primarily in Mussels and Wildcatch.While volumes are expected to recover in the Wildcatch division in 2Q23 (timing impacts), Mussel volumes remain challenging given labour constraints, primarily for the Havelock plant.Whilst overall revenue is broadly in line with 1Q22, SAN has signalled that increased costs for fuel, freight, salmon feed and labour may partially offset price growth.

Sanford (SAN): 1Q23 Update – Initial Impressions

<ul><li>Sanford (SAN) has announced a solid result for FY22</li><li>SAN has provided updates on its key strategic initiatives, but no FY23 guidance was included in this result</li><li>The outlook includes key positives from strong price and demand, as well as the commissioning of the Bioactives plant and a net benefit from a weaker NZD</li></ul>

Sanford (SAN) has announced a solid result for FY22SAN has provided updates on its key strategic initiatives, but no FY23 guidance was included in this resultThe outlook includes key positives from strong price and demand, as well as the commissioning of the Bioactives plant and a net benefit from a weaker NZD

Sanford (SAN): FY22 Result – Initial Impressions

<ul><li>Sanford (SAN) has announced a solid FY22 result driven by (1) a global recovery in demand post-COVID, (2) strong seafood prices across all divisions versus the prior year, and (3) better margins from improved product mix</li><li>SAN also announced a NZ10cps final dividend, which is the first since FY20</li><li>SAN trades at the bottom of its historical two-year PE range and near a historical value floor</li></ul>

Sanford (SAN) has announced a solid FY22 result driven by (1) a global recovery in demand post-COVID, (2) strong seafood prices across all divisions versus the prior year, and (3) better margins from improved product mixSAN also announced a NZ10cps final dividend, which is the first since FY20SAN trades at the bottom of its historical two-year PE range and near a historical value floor

New Zealand

Sanford Limited owns and manages deepwater and inshore fisheries throughout New Zealand waters.  The Company also operates cool-storage, ship-building, engineering and aquaculture businesses.  The Company exports seafood throughout the world.  The Company's seafood products include orange roughy, squid, hoki, tuna, mussels and salmon.

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Sanford Limited (SAN NZ)

Sanford: 1H23 Preview — Catching the Tide

We expect Sanford (SAN) to report positive traction across its divisions supported by continued strength in seafood prices, when it reports its...

Forsyth Barr

Sanford: Checking the Net

Sanford's (SAN) 1Q23 update indicates the recovery of the key mussel division is likely underway, while demand for salmon and wildcatch remains...

Forsyth Barr

Sanford (SAN): 1Q23 Update – Initial Impressions

Sanford (SAN) has reported a mixed 1Q23 update showing strong average price growth across all divisions, but weaker volumes primarily in Mussels...

Forsyth Barr

Sanford (SAN): FY22 Result – Initial Impressions

Sanford (SAN) has announced a solid result for FY22 and provided updates on its key strategic initiatives, but no FY23 guidance was included in...

Forsyth Barr

Sanford: Diving into Open Channels

Sanford (SAN) has announced a solid FY22 result driven by (1) a global recovery in demand post-COVID, (2) strong seafood prices across all...

Forsyth Barr

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