New Zealand King Salmon Investments : FY22 Financial Statements

NEW ZEALAND KING SALMON INVESTMENTS LIMITED AND

SUBSIDIARIES

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2022

CONTENTS

FOR THE YEAR ENDED 31 JANUARY 2022

1	Corporate information	6
2	Basis of preparation	6
3	Significant accounting policies	8
4	New standards adopted and standards issued not yet adopted	13
5	Impairment	14
6	Other income	14
7	Expenses	14
8	Finance income and costs	14
9	Income tax	15
10	Components of other comprehensive income	16
11	Earnings per share	16
12	Cash and cash equivalents	16
13	Trade and other receivables	16
14	Inventories	16
15	Biological assets	17
16	Property, plant and equipment	18
17	Intangibles	18
18	Right of use assets	19
19	Lease liabilities	20
20	Interest bearing loans and borrowings	20
21	Trade and other payables	20
22	Employee benefits	21
23	Commitments and contingencies	21
24	Risk management	21
25	Fair value of financial instruments	23
26	Capital management	24
27	Capital and reserves	24
28	Events after balance date	25
29	Related party disclosure	25
30	Auditor's remuneration	25
31	Reconciliation of net operating cash flow to profit/(loss)	25
32	Revenue from contracts with customers	26
33	Segment information	26

Corporate Information 1

Consolidated statement of comprehensive income 2

Consolidated statement of financial position 3

Consolidated statement of changes in equity 4

Consolidated statement of cash flows 5

Notes to the consolidated financial statements 6

Auditor's Report

NEW ZEALAND KING SALMON INVESTMENTS LIMITED AND SUBSIDIARIES

CORPORATE INFORMATION

BOARD OF DIRECTORS

NEW ZEALAND KING SALMON
INVESTMENTS LIMITED
Ticker: NZK
Listed on the NZX Main Board and
as a foreign Exempt Listing on the
ASX
NZ Company number: 2161790
Paul James Steere	79 High Street	Registered Office
Independent Non-Executive Director	Blenheim	93 Beatty Street
Chiong Yong Tiong	New Zealand	Annesbrook
Non-Executive Director	Nelson
Catriona Macleod	Duncan Cotterill	New Zealand
Independent Non-Executive Director	197 Bridge Street
Carol Chen	Nelson	Postal Address
Non-Executive Director	New Zealand	PO Box 1180 Nelson 7040
New Zealand
Audit and Finance Committee
Paul Steere (Chair)	AUDITORS	Telephone
John Ryder	[phone]
Jack Porus	Ernst & Young (EY)
Level 4, 93 Cambridge Terrace	Website
Nominations and Remuneration Committee	Christchurch	www.kingsalmon.co.nz
Paul Steere (Chair)	New Zealand
Jack Porus	Investor Relations
[e-mail]
Health, Safety and Risk Committee	SHARE REGISTRY
Catriona Macleod (Chair)	Computershare Investor
Chiong Yong Tiong	Services Limited	FINANCIAL CALENDAR
Level 2, 152 Hurstmere Road	31 July 2022:
Takapuna	2023 half year end
BANKERS	Auckland 0622	September 2022:
New Zealand	2023 half year results announcement
The Bank of New Zealand
Deloitte Centre	[phone]
Level 6, 80 Queen Street
Auckland	[e-mail]
New Zealand
Computershare Investor
Services Pty Limited
Yarra Fall
452 Johnston Street

John William Dudley Ryder Independent Non-Executive Chairman Grantley Bruce Rosewarne

Chief Executive Officer and Managing Director Jack Lee Porus

Non-Executive Director

SOLICITORS

Chapman Tripp

Level 34, 15 Customs Street West Auckland

New Zealand

Gascoigne Wicks

Abbotsford VIC 3001

Australia

[phone]

[e-mail]

1

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 JANUARY 2022

2022	2021
12 Months	7 Months
to 31 January	to 31 January
Note	$000	$000
Revenue from contracts with customers	32	174,530	95,239
Cost of goods sold including fair value uplift at point of harvest	14	(177,774)	(98,820)
Fair value gain on biological transformation	15	41,261	29,350
Freight costs to market	(25,275)	(11,616)
Gross profit	12,743	14,153
Other income	6	402	541
Sales, marketing and advertising expenses	(13,471)	(7,702)
Distribution overheads	(5,204)	(3,132)
Corporate expenses	7	(8,649)	(4,979)
Other expenses	7	(1,414)	(889)
Loss before interest, tax, depreciation, amortisation and impairment	(15,593)	(2,009)
Depreciation and amortisation expense	16,17,18	(10,125)	(5,969)
Impairment	5	(59,255)	-
Finance income	8	17	5
Finance expenses	8	(2,636)	(1,353)
Loss before tax	(87,593)	(9,326)
Income tax credit / (expense)	9	14,390	2,247
Net loss after tax	(73,202)	(7,079)
Other comprehensive income
Other comprehensive income that may be reclassified to profit or loss in subsequent periods:
Exchange differences on translation of foreign operations	10	214	(677)
Movement on cash flow hedges	10	(11,765)	22,065
Income tax effect of movement on cash flow hedges	10	3,294	(6,178)
Net other comprehensive income / (loss)	(8,257)	15,210
Total comprehensive income / (loss)	(81,459)	8,131
2022	2021
Earnings per share	12 Months	7 Months
Basic earnings per share	11
Diluted earnings per share	11

$	(0.53)	$	(0.05)
$	(0.53)	$	(0.05)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 JANUARY 2022

2022	2021
31 January	31 January
ASSETS	Note	$000	$000
Current assets
Cash and cash equivalents	12	2,913	3,479
Trade and other receivables	13	19,817	16,186
Taxation receivable	294	-
Inventories	14	34,636	42,489
Biological assets	15	65,529	69,588
Derivative financial assets	25	1,338	5,413
Total current assets	124,527	137,155
Non-current assets
Property, plant and equipment	16	50,620	60,716
Biological assets	15	9,432	18,600
Derivative financial assets	25	3,112	16,354
Intangible assets	17	3,893	9,126
Right-of use assets	18	5,744	6,810
Goodwill	17	-	39,255
Total non-current assets	72,801	150,861
TOTAL ASSETS	197,328	288,016
LIABILITIES
Current liabilities
Trade and other payables	21	16,434	18,597
Employee benefits	22	2,831	2,857
Borrowings	20	49,659	3,024
Lease liabilities	19	1,531	1,580
Other financial liabilities	29	233	233
Derivative financial liabilities	25	3,628	1,646
Taxation payable	301	5,074
Total current liabilities	74,617	33,011
Non-current liabilities
Employee benefits	22	430	696
Borrowings	20	-	39,250
Lease liabilities	19	4,402	5,389
Deferred tax liabilities	9	-	16,923
Derivative financial liabilities	25	6,650	204
Total non-current liabilities	11,482	62,462
TOTAL LIABILITIES	86,099	95,473
NET ASSETS	111,229	192,543
EQUITY
Share capital	27	122,606	122,606
Reserves	10,175	18,286
Retained earnings /(deficit)	(21,552)	51,651
TOTAL EQUITY	111,229	192,543
Net tangible assets per share
Net tangible assets per share	1.04

$

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

For and on behalf of the Board, who authorised the issue of these financial statements on 13 April 2022

0.76

Director

$

13 April 2022

13 April 2022