Oceana reports profit increase for its full year

JSE-listed global fishing Company Oceana says a spike in consumer demand for more pocket-friendly protein has supported the 17% increase in headline earnings per share (Heps) from continuing operations to 626 cents, up from 536.2 cents in 2021.

In a Sens release on Monday – reporting on the group’s 2022 performance for the period ended 30 September – Oceana said that as food prices continue to rise, it expects the demand for such proteins to continue supporting the company’s recovery.

Oceana owns various tinned fish products such as canned pilchards and canned tuna, among others, selling them mainly under the Lucky Star brand.

“Consumer demand for affordable protein and the relative value that Lucky Star provides compared to competing proteins ensured a strong recovery in sales in the second half, after stock constraints hampered the first-half performance,” the group said.

“Sales volumes in the second half increased by 8%, notwithstanding an effective 8% price increase.”

“Fish, particularly canned fish, is an affordable, healthy source of protein for many South African families as the Kasi Brands survey confirmed when it found Lucky Star tinned fish to be the top township brand. The demand was always there, and the second-half sales volumes improved when we were able to replenish our stocks,” CEO Neville Brink said in a statement.

“This as well as global demand for fishmeal and fish oil and the Daybrook performance contributed to a set of results we’re very pleased with, particularly given the constrained global and local economies,” Brink added.

Key metrics

According to the group, positive pricing, higher fishmeal and fish oil sales boosted group revenue from continuing operations by 12% to R 8.15 billion, up from R7.30 billion in 2021.

Earnings per share increased by 16% to 622.9 cents, while operating profit before tax increased by 14% to R1.06 billion.

Although the final dividend was slightly up to 291 cents, from 248 cents in the previous period, total dividends for the 2022 financial period were lower at 346 cents, compared to the 358 cents was reported in 2021.

Oceana’s latest reporting on its financial performance seems to signal that the company is well on its way to redemption after battling various challenges in recent years.

In the last few years Oceana has battled external investigations by financial authorities, with the Financial Sector Conduct Authority (FSCA) in February launching an investigation into the possible publishing of misstatements.

Oceana has also had to work through the precautionary suspension of its CFO Hajra Karrim and the resignation of CEO Imraan Soomra. Its external auditor PwC also parted with the group, resigning due to what it called a lack of communication between it and Oceana.

Read: Oceana sees performance recovery in H2

Outlook

Looking forward to the 2023 financial year, the group believes it is well placed to continue on its current growth trend in the first half of 2023.

“While cost pressures remain a concern, the business is generally in good shape and there is sustained and growing demand for our products,” Brink said.

“We know how reliant many consumers are on Lucky Star and will be driving efficiencies and cost improvements to maintain its relative affordability. We will also be looking to expand the brand into new canned food categories.”

Read:

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