ASX-NZK Consumer Staples Materials

New Zealand King Salmon (ASX:NZK) Reports Increased Mortality Affecting FY26 Harvest

ClubAI 5:26 pm

Operational Update

New Zealand King Salmon Investments Limited (ASX:NZK) is experiencing higher than expected sea farm mortality and lower growth rates, impacting harvest volumes for FY26. Despite the elevated mortality levels, they remain significantly lower than those at the end of FY22 and the beginning of FY23.

Harvest and Financial Outlook

The FY25 guidance remains unchanged at $26m to $30m on a pro-forma operating EBITDA basis. For FY26, initial harvest estimates are between 5,900 and 6,300 MT G&G, with a pro-forma operating EBITDA range likely to be $15m to $24m. Further FY26 guidance will be provided with the year-end results on 27 March 2025.

Mortality Causes and Mitigation

The increased fish mortality is attributed to prolonged elevated water temperatures, which heighten stress and reduce salmon resistance to pathogens. The company has modified its farming model to mitigate summer mortality risks by avoiding warmer sites during summer and continues to invest in initiatives such as thermotolerance, vaccine development, and improved diets to enhance fish health outcomes.

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Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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