Increased sales and higher prices have helped Clean Seas Seafood rebound from a $9 million annual loss, and the kingfish farmer expects significant improvement in the year ahead.
Clean Seas says its turnaround strategy announced in October 2016 is working, with the company's return to profit in 2016/17, to the tune of $202,000, coming a year ahead of plan.
The company's loss of $9 million in 2015/16 included a writedown of $8.6 million on overstocked live fish.
Clean Seas' sales volumes lifted by 13 per cent to 2,287 tonnes, the price per kilogram of large fresh fish increased by 18 per cent, and feed costs were cut.
The company anticipates further increases in sales, prices and profit in the 2017/18 financial year.
"The company expects profit in FY18 to be significantly higher than FY17, while operating cash flow will be impacted by investment in increased biomass to facilitate expected ongoing and significant sales growth in FY18, FY19 and beyond," Clean Seas said in a statement.
Clean Seas is targeting sales of between 2,650 and 2,850 tonnes in 2017/18, with double digit sales growth expected to continue in 2018/19 and beyond.
It said sales of its rebranded Spencer Gulf Hiramasa Kingfish had grown four-fold over the last three years.
Sales increased at double-digit rates in Australia, Europe and North America, but fell in Asia because a distribution agreement with Beston Global Foods failed to deliver material results.
Clean Seas shares were down 0.3 cents at 5.1 cents at 1530 AEST.
HIGHER PRICES, MORE FISH BOOST CLEAN SEAS PROFIT:
* Full year net profit of $202,000 vs $9m loss
* Revenue up 17.6pct to $35.4m
* No final dividend, unchanged
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