Cape Town, South Africa-based fishing company Oceana Group has reported a 4 percent growth in year-on-year earnings to ZAR 636.4 million (USD 43.4 million, EUR 39.4 million) for the 12 months ending 30 September, 2019.
The company’s pre-tax profit rose 2 percent to ZAR 897 million (USD 61 million EUR 55.5 million), with the firm’s management singling out a prolonged winter period in South Africa, which ate into fish landings, and its exit from the Angolan market as key drawbacks in performance during the reporting period.
However, Oceana said despite the strong demand especially for canned fish, mackerel, and hake, the company’s overall revenue growth was almost flat at ZAR 7.65 billion (USD 521 million EUR 473 million) in 2019 compared to ZAR 7.66 billion (USD 522 million EUR 473.7 million) in 2018.
A difficult trading environment saw Oceana’s overall gross profit drop 8 percent by last September to ZAR 2.62 billion (USD 179 million, EUR 162 million), down from ZAR 2.83 billion (USD 193 million, EUR 175 million) in 2018. Similarly, profit after tax dropped by 27 percent to ZAR 648.4 million (USD 44 million, EUR 40 million), down from ZAR 882.2 million (USD 60 million, EUR 54.6 million) in 2018.
“The extended winter in South Africa saw the Fishmeal Africa operation experience a 13 percent reduction in landings, and further impairments occurred as a result of our exit from the Angolan business,” Oceana Group CEO Imraan Soomra said.
Nevertheless, Soomra said the company’s canned fish operations, centered around its Lucky Star brand, and posted a 12 percent growth in revenue “due to good volume growth in a tough trading environment.”
Oceana sold 9.5 million Lucky Star cartons, an increase from the 8.8 million sold in 2018, a result of “a double-pronged strategy that included prioritizing consumer affordability and availability on shelf despite a shortage of local fish supply.”
Meanwhile, Oceana said although the timeline for South Africa’s Fishing Rights Allocation Process (FRAP 2021) remains uncertain, the company has identified policy engagement and having a new minister’s advisory team in place as key steps in moving the FRAP forward.
The FRAP 2020 was delayed for a year and will now expire in 31 December, 2021 affecting several fishing sectors such as the Hake deep sea trawl, South Coast rock lobster, and squid that are major segments in Oceana’s fishing business.
