Pacific Andes to benefit from tariff reduction

By

SeafoodSource staff

Published on
February 8, 2012

Pacific Andes on Thursday reported its results for the first quarter of fiscal 2012 for its subsidiaries, Pacific Andes Resources Development Ltd. (PARD) and China Fishery Group.

PARD’s revenue increased 41.3 percent to HKD 2.45 billion in the first quarter, while its operating income jumped 21 percent to HKD 500.3 million and its net profit rose 30 percent to 217.6 million.

China Fishery’s revenue increased 9.3 percent to HKD 981.2 million in the first quarter, while its operating income jumped 8.9 percent to HKD 400.1 million and its net profit rose 20.8 percent to 185.6 million.

“Although the first quarter has always been the weakest quarter for the fishing division due to seasonality, we are pleased to achieve healthy growth in overall revenue and profit. Demand for our products remains strong despite the European economicccrisis, attesting to the resilience of our business,” said Ng Joo Siang, vice chairman and managing director of Pacific Andes.

“Looking ahead, we expect our fishing division to benefit from the recent acquisitions of two Peruvian fishing companies in November 2011 and the continuous improvements in operational efficiencies and utilization of the fishing fleet. We will continue to identify new and sustainable fishing grounds with rich resources. We also expect the frozen fish SCM division to further increase its sales through market expansion to better capture the growing demand in various markets,” he added.

Additionally, Pacific Andes stands to benefit from China’s decision to reduce tariffs on a range of commodities and food products, effective 1 January. China is the leading market for both PARD and China Fishery, representing 73.4 percent and 69.4 percent, respectively, of total revenue.

“The group has taken steps in the past years to grow revenue and improve efficiencies, thereby laying a solid foundation for continued growth. The positive outlook for our business as well as our strong foundation has placed Pacific Andes in a good position to achieve higher profitability in the coming quarters.” said Ng.

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