- Sea Harvest announced its interim results on Monday, showing headline earnings 19% ahead of 2020.
- The group's performance was driven by its local fishing operations, its Cape Harvest Food Group and Australian operations.
- CEO Felix Ratheb is especially pleased with the acquisition of Mooivallei Suiwel by the group's subsidiary Ladismith Cheese, which bolstered cheese production capacity.
The Sea Harvest Group's half-year results were driven by "consistent performances" from its South African fishing segment, the Cape Harvest Food Group segment (which includes Ladismith Cheese) and its Australian operations, it announced on Monday.
However, the aquaculture segment, despite more than doubling its revenue, severely impacted by the effects of Covid-19 on global markets, the group said in a statement.
The group has delivered headline earnings of R202 million for the half year ended 30 June 2021, 19% ahead of 2020. Earnings per share increased 27% to 77.7 cents per share. Group revenue for the period increased 5% to R2.1 billion.
"We are pleased with our performance, considering we faced headwinds in the form of a 5% reduction in the total allowable catch in 2021, a stronger rand, additional Covid-19 related costs and operating pressures in our aquaculture segment," comments Ratheb.
"However, we benefitted from good fishing conditions, firm export and local retail markets and a sound hedging strategy, delivering operating profit of R323 million for the period - 26% higher than the prior period - with the operating profit margin expanding to 15%."
Sea Harvest is "anxiously" looking forward to the conclusion of the latest South African fishing rights allocation process, which is expected to be finalised in December this year.
The group said its takeover of Mooivallei Suiwel by its wholly owned subsidiary Ladismith Cheese in August has adds significant cheese production capacity to the group.
By late morning on Monday, Sea Harvest's share price was up almost 4% at R13.49.