Maybe it was too shaken by the retirement of its director or it was really focused on its acquisition of Nine Ocean Group. Either way, for some reason, the secondary producer of nutraceuticals, seafood products and premium marine ingredients New Zealand Coastal Seafoods (ASX: NZS) hid its sales number during the Annual General Meeting, potentially ticking off shareholders.
In the aftermath, The Company reported its sales for October and November “in response to requests at the Company’s recent Annual General Meeting”. NZS achieved sales of $803,5021 during October and November 2022, representing a 25% increase on sales generated across the entirety of the prior comparative period Q2 FY2022 sales, i.e. $644,7961.
Recent sales momentum has flowed through to total sales of $1.8 million in H1 FY2023 to date, a 27% increase on H1 FY2022 ahead of the busy December 2022 sales period. The strong result has been underpinned by increased sales volumes of the Company’s premium marine products, predominately NZS’ premium dried ling maw, in both branded and bulk purchase formats.
New Zealand Coastal Seafoods CEO Andrew Peti, commented, “The Company has made very strong progress in recent months, highlighted by a step-change in sales momentum during H1 FY2023. Pleasingly, October and November 2022 sales have already eclipsed the entirety of Q2 FY2022. As travel restrictions associated with the COVID-19 pandemic continue to relax, the Company has been able to undertake a number of business development initiatives across key Australasian markets.”
He pointed out that the positive results have compelled the Company’s executive team to advance a number of new commercialisation opportunities that remain in the pipeline. New Zealand Coastal Seafoods is an aquaculture company, which provides a range of seafood, including mussels, oysters, maw, marine oil and more. It takes on multiple research and development endeavours to discover new fishing techniques sustainably.
Though the picture seems pretty, the shareholder insistence on revealing sales data wasn’t completely misplaced. In fact, it probably was a result of the Company reporting a cash burn of about $600k in the September quarter alone, spent largely on product manufacturing. They were reasonably wondering whether the money has made its way back.
Peti added, “The Board and management have executed a review of the Company’s cost base which has resulted in a reduction of operating expenditure across select business units, to drive group margin growth while also exploring opportunities to accelerate sales through the nutraceutical division.”
Given that the impending Nine Ocean acquisition is based on shareholder approval, it’s clear that shareholders are keeping close tabs on New Zealand Coastal Seafoods to keep management on their toes.
Alinda is a Business Reporter for The Sentiment
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