COVID-19 and Business Update
New Zealand Coastal Seafoods Limited (“NZCS”, the “Company”) (ASX:NZS) today provides an update on the Company’s operations and business in the context of the evolving COVID-19 situation.
As a primary food producer, under current COVID-19 restrictions, NZCS is deemed an ‘Essential Service’ by the New Zealand Government, with operations approved to continue during the lockdown period.
NZCS has implemented a strategic response plan to ensure continuity in product delivery and sales, including drying, pre-processing and packing sufficient stock to maintain staff safety whilst allowing for ease of dispatch to customers during the temporary COVID-19 disruptions.
The first 1000kg order for SuperMilkBaba (NZ) Limited (“SMB”) has been successfully dispatched and processed, with NZCS able to fulfil further orders for SMB and other customers during the lockdown period.
The Company anticipates a longer term increase in demand for packaged and other food products produced in ‘clean’ jurisdictions such as New Zealand, as the impact from COVID-19 focusses consumer behaviour and shopping habits.
NZCS management is actively monitoring developments as they unfold across the globe and ensuring full compliance with the latest guidelines issued by health authorities and governments in the jurisdictions in which the Company operates.
Despite current conditions, NZCS is starting to see improved demand for its seafood products abroad, with the Company anticipating a longer term increase in demand for food products that are produced in ‘clean’ jurisdictions such as New Zealand, as the impact from COVID-19 focusses consumer behaviour and shopping habits.
The Company’s diversification across edible and nutraceutical seafood products may further mitigate against the overall economic risk of COVID-19, with NZCS’s global customer base and flexible supply chain reducing exposure to restrictions in certain geographic regions. NZCS is also continuing the development of Nutraceutical products, as the Company continues to enter this high growth market.
New Zealand Coastal Seafoods Limited, commented: “While the full impact of COVID-19 on the economy and business is still unclear, NZCS’s diverse product line, global customers, flexible supply chain and adaptability, position the business well to meet operational challenges as they evolve and benefit from the increased focus on the clean products NZCS produces.
Jane Morgan Management
Investor and Media Relations
+ 61 (0) 405 555 618