Cape Town, South Africa-based seafood company Premier Fishing and Brands Ltd. has reported a positive financial performance for the six months ending 28 February, 2021, supported by profits generated by its squid division.
Premier Fishing, which specializes in the harvesting, processing, marketing, and sales and distribution of marine products – reported an increase in revenues to ZAR 284 million (USD 20.4 million, EUR 16.7 million), up from the ZAR 215 million (USD 15.7 million, EUR 12.6 million) it earned in the second half of last year.
Premier CEO Rushaan Isaacs said the company's gross profit increased to ZAR 87 million (USD 6.2 million, EUR 5.1 million), up from ZAR 80 million (USD 5.7 million, EUR 4.7 million) a year ago.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 43 percent ZAR 40 million (USD 2.8 million, EUR 2.3 million), compared to ZAR 28 million (USD 2 million, EUR 1.6 million) in the previous period.
The positive showing by Premier was driven largely by the company’s squid division, which earned ZAR 157 million (USD 11.3 million, EUR 9.2 million), up from ZAR 107 million (USD 7.7 million, EUR 6.2 million) last year.
The squid division reported higher catch rates, and Isaacs said the sector’s figures mark “a complete turnaround from the prior year where the squid resource was scarce.”
“The global market for South African squid remains strong, hence the potential of the squid division is in a good position,” she said.
Furthermore, Isaacs said Premier’s seafood products continue to attract premium prices in the global seafood market, despite ongoing challenges related to COVID-19.
Premier Fishing said it will prioritize the expansion of its abalone farm in coming months, pushing the holding capacity to 500 metric (MT) tons, up from the current 300 MT, an initiative that has been held back by the COVID-19 pandemic. The expansion is also expected to increase the farm’s annual production from 120 MT to between 300 to 350 MT, with corresponding increase in revenues and profits.
The pandemic also posed challenges to the growth of the company’s hake and pelagic divisions, despite posting solid performance for the six months under review.
Premier is optimistic about the future of its growth, despite the uncertainties posed by the disruption by COVID-19 – with the company expecting good results from its lobster, pelagic, and hake sectors due to what it says is “historical trends and seasonality.”
“The group is still well positioned to create and maintain shareholder value through organic and acquisitive growth, thereby ensuring delivery on our stakeholder commitments,” Isaacs said.
Isaccs said the company's management is confident “all major economies globally will recover from the global effects of COVID-19, and hence the major fish markets will recover as well.
"The group will continue to focus on its short- and long-term strategic objectives," Isaacs said.
The company has listed the 2021 Fishing Rights Application Process as its “main strategic focus area” in coming months. This has come shortly after South Africa Fisheries Minister Barbara Creecy said the country is eager to stabilize the fishing sector through the allocation of longer-term fishing rights is critical to attracting investment into the industry. At least 12 sectors are due for reallocation of fishing rights in 2021.
Photo courtesy of Premier Fishing Ltd.
