David Mair: Sanford Managing Director on profits surging 224% and reducing debt by half

A big turnaround for fisheries company Sanford with the reveal of their latest profits.  

They’ve reported an after-tax profit of $63.7 million – a 224% increase for the year to September.  

Cash flow was also up 85%, helping cut debt by nearly half to $93.4 million. 

Sanford Managing Director David Mair told Mike Hosking that by focusing on customers, they’re turning the business around.  

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:16):
Back to this good news story of Sandford and the
fishing two hundred and twenty four percent boost and profit
debts are down, the muscles are selling. David Mayor of
Sandford's managing director and is with us.

Speaker 3 (00:25):
Good morning, Good morning mate.

Speaker 2 (00:26):
So the turnaround journey, is it complete or are we
on our way?

Speaker 3 (00:31):
We're on our way. We're about halfway through, whatever that means.
But it's very pleasing to have such a great result.

Speaker 2 (00:37):
So by way a background, you came from another company,
you relatively knew there, What did you find, what did
you like? What were the problems?

Speaker 3 (00:46):
If I was managing director of scaler Up for fourteen years.
In a funny way, the business principles are the same.
So I'm a purpose guy, not a mission guy or
a vision guy or those kind of things. And by
focusing on customers, true customer focus, we're turning this business around.
But of course that takes time. So the challenges have

(01:09):
been that Cenford had too much debt in my view,
and the debt was increasing, and I'm I'm very focused
on operating cash flow. So the thing I'm most pleased
and the results was simply we created one hundred and
thirty five point three million of operating cash flow and
use that cash flow to pay down debt ninety two

(01:31):
point one million. Repayment of debt our net debt is
now ninety three point four And as you know well Mike,
that means we're in control of the company, not the bens.

Speaker 2 (01:42):
Is yours a Sandford story as opposed to a Fishing story?
Then do you think?

Speaker 3 (01:46):
Yes? Very much? So I'm to borrow a quote, I'm
dere to make Sanford grade again.

Speaker 2 (01:54):
Good on you. Where's China fit into all of this?
And what can you tell us about China as opposed
to say, America as a market.

Speaker 3 (02:01):
Yeah, that's a that's a really interesting thing, because you know,
the signals from the government and others are you know,
we we need to divert fire away from China. But
from my point of view, you know, I lived in
Japan for ten and a half years. Will bore you
with my history, But the reality is China remains a
very important market for companies like Sanford. The fundamental thing

(02:22):
that the world wants from New Zealand is protein. So
Centford's very much a protein story in the same way
that you know many about dairy companies are Fums the
largest one from Tier and they will continue to just
think about the population and the growth protein. Growth of
protein for the next ten years is just up. It's
very strong. Back ones doesn't sound very exciting selling protein

(02:44):
compared to salmon or muscles or whatever. But China is
very important to us and so we are re establishing
strong relationships in the air and the business is going
well right now. It's tough in China because discretionary spending
has dropped away and that's just you know, to have
internal issues and things like that. But us things will
get sold. Business is taking a longer term view, not

(03:06):
looking at last month, next month, that kind of thing.

Speaker 2 (03:09):
What about the US and the tariffs, Yeah, it's again.

Speaker 3 (03:14):
The tariff thing is interesting for us. You know, I
observe the change in beef and things like that, But
for US and for all New Zealand exporters, it comes
down to who pays. So when it comes to just
quickly salmon our importers pay the tariff and they believe
they can pass it on the closer you get to it,

(03:36):
you know, a substitutable product, a true commodity like for example,
frozen half shell muscles. It's much easier to substitute, so
it's much harder to pass it on where the ultimate
consumer can change. It's had almost no impact on Centford
in the f y twenty five and we don't see
you know ke for how I say that that we

(03:57):
don't see a big impact going.

Speaker 2 (03:59):
Forward, Well that's encouraging. All I can do is wish
you the very best. David Man, who's the other boss
at Sandford this morning, right the Epstein vote.

Speaker 1 (04:06):
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