1 00:00:00,040 --> 00:00:01,880 Speaker 1: Back to this good news story of Sandford and the 2 00:00:01,920 --> 00:00:04,160 Speaker 1: fishing two hundred and twenty four percent boost and profit 3 00:00:04,480 --> 00:00:06,760 Speaker 1: debts are down, the muscles are selling. David Mayor of 4 00:00:06,760 --> 00:00:08,560 Speaker 1: Sandford's managing director and is with us. 5 00:00:08,600 --> 00:00:10,080 Speaker 2: Good morning, good morning mate. 6 00:00:10,160 --> 00:00:13,000 Speaker 1: So the turnaround journey, is it complete or are we 7 00:00:13,080 --> 00:00:13,760 Speaker 1: on our way? 8 00:00:14,520 --> 00:00:17,760 Speaker 2: We're on our way, We're about halfway through, whatever that means. 9 00:00:18,720 --> 00:00:20,960 Speaker 2: But it's very pleasing to have such a great result. 10 00:00:21,280 --> 00:00:24,079 Speaker 1: So by way of background, you came from another company, 11 00:00:24,120 --> 00:00:26,520 Speaker 1: you relatively knew there. What did you find, what did 12 00:00:26,560 --> 00:00:27,960 Speaker 1: you like? What were the problems? 13 00:00:30,000 --> 00:00:33,440 Speaker 2: If I was managing director of scalar Up for fourteen years. 14 00:00:34,159 --> 00:00:38,080 Speaker 2: In a funny way, the business principles are the same. 15 00:00:38,200 --> 00:00:40,320 Speaker 2: So I'm a purpose guy, not a mission guy or 16 00:00:40,320 --> 00:00:43,080 Speaker 2: a vision guy or those kind of things. And by 17 00:00:43,440 --> 00:00:47,320 Speaker 2: focusing on customers, true customer focus, we're turning this business around. 18 00:00:47,360 --> 00:00:52,640 Speaker 2: But of course that takes time. So the challenges have 19 00:00:52,760 --> 00:00:57,880 Speaker 2: been that sense. It had too much debt in my view, 20 00:00:58,280 --> 00:01:01,840 Speaker 2: and the debt was increasing, and I'm very focused on 21 00:01:01,880 --> 00:01:04,160 Speaker 2: operating cash flow. So the thing I'm most pleased in 22 00:01:04,200 --> 00:01:07,200 Speaker 2: the results was simply we created one hundred and thirty 23 00:01:07,240 --> 00:01:10,640 Speaker 2: five point three million of operating cash flow and use 24 00:01:10,720 --> 00:01:14,680 Speaker 2: that cash flow to pay down debt ninety two point 25 00:01:14,720 --> 00:01:17,920 Speaker 2: one million. Repayment of debt our net debt is now 26 00:01:18,000 --> 00:01:21,000 Speaker 2: ninety three point four And as you know, well Mike, 27 00:01:21,480 --> 00:01:24,679 Speaker 2: that means we're in control of the company, not the bens. 28 00:01:25,720 --> 00:01:28,400 Speaker 1: Is yours a Sandford story as opposed to a fishing story, 29 00:01:28,440 --> 00:01:29,119 Speaker 1: then do you think? 30 00:01:30,000 --> 00:01:34,480 Speaker 2: Yes? Very much? So I'm to borrow a quote, I'm 31 00:01:34,520 --> 00:01:36,520 Speaker 2: there to make Sandford grade again. 32 00:01:37,440 --> 00:01:40,480 Speaker 1: Good? Hen you where's China fit into all of this? 33 00:01:40,560 --> 00:01:42,600 Speaker 1: And what can you tell us about China as opposed 34 00:01:42,640 --> 00:01:44,080 Speaker 1: to say, America as a market. 35 00:01:45,280 --> 00:01:48,200 Speaker 2: Yeah, that's a that's a really interesting thing because you know, 36 00:01:48,240 --> 00:01:50,320 Speaker 2: the signals from the government and others are you know, 37 00:01:50,360 --> 00:01:53,760 Speaker 2: we we need to diversify away from China. But from 38 00:01:53,760 --> 00:01:55,520 Speaker 2: my point of view, you know, I lived in Japan 39 00:01:55,560 --> 00:01:57,840 Speaker 2: for ten and a half years. Why bore you with 40 00:01:57,920 --> 00:02:01,480 Speaker 2: my history. But the reality is China remains a very 41 00:02:01,520 --> 00:02:05,560 Speaker 2: important market for companies like Sanford. The fundamental thing that 42 00:02:05,600 --> 00:02:08,519 Speaker 2: the world wants from New Zealand is protein, So Centford's 43 00:02:08,639 --> 00:02:10,680 Speaker 2: very much a protein story. In the same way that 44 00:02:10,840 --> 00:02:13,160 Speaker 2: you know, many about dairy companies are forms. The largest 45 00:02:13,160 --> 00:02:16,880 Speaker 2: one from tier and they will continue to just think 46 00:02:16,880 --> 00:02:20,760 Speaker 2: about the population and the growth protein. Growth of protein 47 00:02:20,840 --> 00:02:24,440 Speaker 2: for the next ten years is just up. It's very strong. 48 00:02:24,480 --> 00:02:28,079 Speaker 2: Back ones. It doesn't sound very exciting selling protein compared 49 00:02:28,120 --> 00:02:31,239 Speaker 2: to salmon or muscles or whatever. But China is very 50 00:02:31,240 --> 00:02:34,720 Speaker 2: important to us and so we are re establishing strong 51 00:02:34,760 --> 00:02:38,680 Speaker 2: relationships there and the business is going well. Right now. 52 00:02:38,919 --> 00:02:42,880 Speaker 2: It's tough in China because discretionary spending has dropped away, 53 00:02:43,520 --> 00:02:45,520 Speaker 2: and that's just you know, to have internal issues and 54 00:02:45,560 --> 00:02:48,120 Speaker 2: things like that. But thus things will get sold. Business 55 00:02:48,200 --> 00:02:51,320 Speaker 2: is taking a longer term view, not looking at last month, 56 00:02:51,440 --> 00:02:53,040 Speaker 2: next month, that kind of thing. 57 00:02:53,320 --> 00:02:57,040 Speaker 1: What about the US and the tariff, Yeah, it's again. 58 00:02:58,000 --> 00:03:01,080 Speaker 2: The tarff thing is interesting for us, you know, observe 59 00:03:01,240 --> 00:03:04,040 Speaker 2: the change in beef and things like that. But for 60 00:03:04,160 --> 00:03:07,119 Speaker 2: US and for all New Zealand exporters, it comes down 61 00:03:07,120 --> 00:03:11,160 Speaker 2: to who pays. So when it comes to just quickly salmon, 62 00:03:12,040 --> 00:03:16,960 Speaker 2: our importers pay the tariff and they believe they can 63 00:03:17,000 --> 00:03:20,079 Speaker 2: pass it on the closer you get to it. You know, 64 00:03:21,080 --> 00:03:25,280 Speaker 2: a substitutable product, a true commodity like for example, frozen 65 00:03:25,320 --> 00:03:28,799 Speaker 2: half shell muscles, it's much easier to substitute so it's 66 00:03:28,880 --> 00:03:32,120 Speaker 2: much harder to pass it on where the ultimate consumer 67 00:03:32,240 --> 00:03:36,520 Speaker 2: can change. It's had almost no impact on Centford in 68 00:03:36,520 --> 00:03:39,920 Speaker 2: the twenty five and we don't see you know key 69 00:03:39,960 --> 00:03:41,720 Speaker 2: for how I say that that we don't see a 70 00:03:41,760 --> 00:03:43,119 Speaker 2: big impact going forward. 71 00:03:43,000 --> 00:03:44,680 Speaker 1: Well that's encouraging. All I can do is wish you 72 00:03:44,720 --> 00:03:47,160 Speaker 1: the very best, David Man, who's the other boss at Sandford. 73 00:03:47,200 --> 00:03:48,760 Speaker 1: This morning, right the Epstein vote. 74 00:03:49,360 --> 00:03:52,240 Speaker 2: For more from the Mic Asking Breakfast, listen live to 75 00:03:52,360 --> 00:03:55,440 Speaker 2: news talks it'd be from six am weekdays, or follow 76 00:03:55,480 --> 00:03:57,040 Speaker 2: the podcast on iHeartRadio.