Copeinca acquisition boosts China Fishery 1Q
China Fishery Group on Tuesday reported a 15.2 percent year-on-year increase in its profit to USD 15.7 million (EUR 11.5 million) for its first quarter ending 28 December 2013. Revenue increased by 34.4 percent to USD 145.2 (EUR 106.4 million) compared to USD 108.1 million (EUR 79.2 million), reflecting contributions from recently-acquired fishmeal and fish oil company Copeinca.
For the time period, gross profit increased by 56.5 percent to USD 44.3 million (EUR 32.5 million) from USD 28.3 million (EUR 20.7 million). EBITDA increased by 43.1 percent to USD 63.3 million (EUR 46.4 million) from USD 44.2 million (EUR 32.4 million). Net profit after tax rose to USD 15.7 million (EUR 11.5 million) from USD 13.6 million (EUR 10 million), an increase of 15.2 percent.
“Our strategy of acquisition and consolidation of business in Peru is translating into strong growth for the Group,” said Ng Joo Siang, China Fishery managing director. “We will continue to integrate our enlarged fishmeal operations during the second quarter of FY2014 to realize the full benefit from the synergies from our acquisition of Copeinca when the 2014 first season commences in April/May 2014. We are confident of profitability continuing into the next quarter.”
Revenue from the Peruvian fishmeal operations, which accounted for 50.8 percent of total revenue, increased to USD 73.8 million (EUR 54.1 million) compared to USD 15.1 million (EUR 11.1 million) to. The increase was due to the acquisition of Copeinca. During the quarter, average selling prices of fishmeal and fish oil were USD 1,388 (EUR 1,017) per ton and USD 1,977 (EUR 1,448) per ton respectively, amid a significant increase in the TAC of Peruvian anchovy for the 2013 second fishing season.
Revenue from the contract supply business, which accounted for 40.6 percent of total revenue, declined 34.3 percent to USD 58.9 million (EUR 43.2 million) on lower sales volume.
Revenue from the China Fishery fleet, which accounted for the remaining 8.6 percent of total revenue, increased to USD 12.5 million (EUR 91.6 million) from USD 3.3 million (EUR 2.4 million). The increase was due to contributions from fishing operations in Namibia established in the second quarter of 2013.