Cape Town, South Africa-based Premier Fishing and Brands reported a 17 percent revenue decline for the year ending 31 August, 2022, concluding a tough operating period the company is blaming on the COVID-19 pandemic.
The company’s revenues dipped by ZAR 100 million (USD 5.78 million, EUR 5.56 million) to ZAR 475 million (USD 27.45 million, EUR 26.43 million), down from the ZAR 575 million (USD 33.2 million, EUR 32 million) the company posted in 2021 – mainly because of reduced catch rates in the squid division.
“While the export market for squid remains very strong, as the market saw high prices per kilogram, the group unfortunately could not capitalize on the price factor due to the low volumes caught,” a joint statement by company CEO Sooren Ramdenee and chairperson Aziza Amod said.
Premier Fishing’s gross profit for the same period dipped 20 percent to ZAR 153 million (USD 8.84 million, EUR 8.51 million) from 2021's ZAR 192 million (USD 11 million, EUR 10.68 million).
The company’s profit before tax rose 6 percent to ZAR 19 million (USD 1.09 million, EUR 1.05 million), largely due to financial support from South Africa’s Department of Trade Industry and Competition, supplemented with “solid performances for the lobster sector as well as solid divisional performances in the pelagic and the hake sector.”
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 11 percent to ZAR 48 million (USD 2.77 million, EUR 2.67 million) compared to ZAR 43 million (USD 2.48 million, EUR 2.39 million) for the previous year.
Premier said its catch rates for south coast rock lobster, hake, and pelagic species “were solid and this is expected to continue as the resource remains strong.”
It said although its farmed abalone sector showed good signs of improvement, especially in the export market, the sector’s margins came under intense strain due to “local costs such as electricity, water, fuel, bait, feeding costs, and employee costs.” The company also had to grapple with a decreased total allowable catch for the west coast rock lobster, which the company attributed to political challenges and resource issues “for both our own quota and outside quota holders.”
“However, with all the challenges, we remain optimistic and positive as the abalone export markets have shown signs of recovery and we hope to experience better catch rates for west coast rock lobster in the future years,” the statement said.
The company said it doesn’t plan to pay out dividends due to the continued market uncertainty caused by the COVID-19 pandemic.
“As a consequence of this uncertainty, and the challenging year it has been, the board of directors believes that preservation of cash is paramount to ensure the sustainability of the group in this current environment, and has such, made the decision not to declare a dividend for the year ending 31 August, 2022,” Ramdenee and Amod said. Despite the uncertainty, they said, "the group is in a sound financial position and that it has access to sufficient borrowing facilities to meet its foreseeable cash requirements.”
The company also lauded the Fishing Rights Application Process, concluded in March 2022, as one of the best for Premier Fishing as it “scored very well in all its major applications as we submitted very strong applications.”
The company was awarded all its fishing rights for the next 15 years in all sectors including the south coast rock lobster, anchovy, pilchard, squid, and deep-sea and longline hake fisheries.
“The group looks forward to the next 15 years of fishing and will look to continue its good management of the entire fleet and crew and continue its massive strides it has made into job creation, corporate social investment, and transformation,” the company said.
Photos courtesy of Premium Fishing and Brands
