Diversified portfolio steadies the course
Revenue remains steady for Oceana Group despite market pressures
SOUTH AFRICA: Improved performance in its US fishmeal and fish oil business, Wild Caught Seafood, and Lucky Star for the first 11 months of its financial year boosted Oceana’s operating profit, while revenue remained steady.
“The Daybook, Wild Caught Seafood and Lucky Star Foods performances more than offset the impact of constrained raw-material supply on our African fishmeal and fish oil business. This once again proves the worth of a diversified portfolio spread across species, geographies and markets,” says Oceana CEO, Neville Brink in a statement confirming that the company will release results for the year ending 30 September before the end of November.
In a voluntary trading update for the period ended 31 August, the global fishing and food processing company said Daybrook, its US fishmeal and fish oil business, delivered a strong performance due to higher sales volumes and better pricing.
Wild Caught Seafood also improved, driven mainly by a good recovery in the horse mackerel business and hake’s continued solid contribution.
Lucky Star Foods delivered mixed results. First-half performance was strong, but frozen fish shortages and constrained canned pilchard availability resulted in a subdued second half. Total sales volumes declined by 5%, although strong canned meat sales, higher net realised prices, lower freight and inventory holding costs and a better sales mix helped protect margins.
Continued pressure in the African fishmeal and fish oil business partially offset these gains. Lower industrial fish landings and reduced cannery by-product volumes led to a significant decline in production and sales volumes and a substantially larger operating loss for the period.
Oceana has nearly 4,000 employees based in South Africa, Namibia, and the United States. The Group operates 54 vessels and eight production facilities in three countries on two continents, selling products to customers in 41 countries.
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