Despite the disruption of COVID-19 to the foodservice sector, a jump in retail sales boosted Angel Seafood’s net profit for the six months ending 31 December, 2020.
According to a statement to the Australian Securities Exchange this week, the South Australian company registered a profit of AUD 719,000 (USD 574,720, EUR 470,086) during the latter part of 2020.
The Pacific oyster producer hailed its performance during the later part of 2020, saying that it would now report its results based on the calendar year, rather than the previous 30 June financial year-end, to more closely align with its growing and sales cycle.
Angel Seafood Founder and CEO Zac Halman said the past six months represented “significant progress and development” for the company.
“This is a fantastic outcome and demonstrates the underlying strength of our business and the continued demand for oysters,” he said.
Halman said the future looks bright for the prospect of oyster production in Australia, and the company aims to double production to 20 million oysters a year.
According to the company’s annual report for the six-month period ending December 31, the company achieved record sales of 5.1 million oysters sold in in the second half of 2020, up 55 percent compared to the first half of the year, which the company attributed to the “success of Angel’s multi-bay strategy and retail sales momentum.”
The company posted revenues of AUD 3.8 million (USD 2.9 million, EUR 2.4 million), up 52 percent on the previous period, while cutting operating costs by 20 percent.
In its investor’s presentation in January, Angel Seafood said retail markets and building stronger relationship with big retailers in Australia have been key to its growth strategy.
The financial report also noted that the company raised AUD 4 million (USD 3.19 million, EUR 2.61 million) through a placement in December to support capital projects. The company is raising funds to continue its three-pillar growth strategy, targeting production increase, raising productivity, and improving oyster pricing through premium brand positioning.
“Having successfully completed the initial phase of Angel’s growth strategy, the company is now continuing down the path towards further growth, underpinned by our recently unveiled three-pillar growth strategy that will aim to double production capacity to 20 million oysters and improve profitability through productivity gains and initiatives to increase the average [oyster] price,” Angel Seafood Chairman Tim Goldsmith said in his letter to investors.
Goldsmith said he is optimistic about achieving continued growth amid the COVID-19 pandemic.
“Our emerging brand presence, growing recognition of Angel’s ability to guarantee a continuous supply of its high-quality organic oysters to the retail channel, and the return of demand from the restaurant channel following the easing of COVID-19 related restrictions position Angel for an even brighter future,” he said.
Photo courtesy of Angel Seafood
