New Zealand King Salmon Investments (ASX:NZK, NZE: NZK) said it's experiencing higher than expected sea farm mortality and lower than anticipated growth rates which will impact harvest volumes for fiscal year 2026, according to a Monday Australian and New Zealand bourse filing.

This situation will not impact the current fiscal year guidance of NZ$26 million to NZ$30 million on pro-forma operating earnings before interest, taxes, depreciation, and amortization basis, as the elevated mortality has occurred post after Jan. 31 but will impact the company's harvest and profitability, the filing added.

The company said the mortality levels are significantly lower than the mortality that occurred at the end of the fiscal year 2022 and the beginning of the fiscal year 2023.

Initial estimates for the fiscal year 2026 harvest are now between 5,900 and 6,300 metric tonnes gross and gutted with a pro-forma operating EBITDA range likely to be NZ$15m to NZ$24 million.

The company's shares dropped nearly 9% in recent Monday trade.