South African fishing and processing company I&J has posted improved results for the first half of the current financial year.
For the six months July through December 2015, the AVI Ltd.-owned business’ revenue increased by 1.9 percent from ZAR 980 million (EUR 58.7 million; USD 64.4 million) to ZAR 1 billion (EUR 60 million; USD 65.7 million), while its operating profit grew from ZAR 98.1 million (EUR 5.9 million; USD 6.4 million) to ZAR 159.7 million (EUR 9.6 million; USD 10.5 million). Its operating profit margin increased from 10 percent to 16 percent.
According to AVI, the revenue and profit growth reflected the benefit of the weaker rand on export sales, lower fuel prices and a “sound” processing performance. It added that I&J’s catch rates improved after a period of inconsistent fishing in the second half of the previous financial year, and yet they were still lower than in the first half of last year.
Two new vessels were commissioned during the semester – adding capacity to offset the pressure of lower catch rates.
Looking ahead, AVI believes I&J will continue to benefit from the impact of the weaker rand on export revenues, and should be able to catch more hake with its new vessels that will be available for the whole of the second half.
AVI said that as catch rates have a material impact on volumes and efficiency, they will need to remain at acceptable levels for I&J to repeat its first-half growth in operating profit.
