Fishing group Oceana reported a sharp decline in half-year profits, with headline earnings per share (HEPS) dropping 43.9% to 324.9 cents. The slump was mainly due to weaker global fish oil prices, triggered by the recovery of Peru’s anchovy stocks, which boosted supply. Despite this, the company saw a 2.9% rise in revenue to R5.2 billion, driven by strong sales in canned foods, fishmeal, and wild-caught seafood. However, its US-based Daybrook business suffered from lower fishmeal and fish oil prices, dragging down overall profitability.
One bright spot was Oceana’s Lucky Star canned foods division, which delivered record sales of 5.1 million cartons, supported by improved factory efficiency and increased local production. The wild-caught seafood segment also performed well, with operating profit surging due to better hake catches and stable demand. However, higher costs, including frozen fish imports, pushed net debt up to R3.5 billion, leading to a 43.6% cut in dividend payouts to 110 cents per share.
Looking ahead, Oceana expects continued challenges in the fishmeal and fish oil markets but remains optimistic about Lucky Star and its wild-caught seafood business. The company plans to focus on debt reduction, cost management, and maintaining strong inventory levels to meet consumer demand. CFO Zaf Mahomed confirmed that Oceana is well-prepared for the second half of the year, despite the mixed outlook. The group will need to navigate market pressures carefully while capitalising on its stronger-performing divisions.