The Oceana Group’s headline earnings per share declined by 38% for the year to September 2025, in line with expectations. Despite fish oil prices halving, the Group’s performance was supported by a strong turnaround in the Wild Caught Seafood segment and solid Lucky Star Foods results, contributing to the African business increasing operating profit by 58%.
Group revenue decreased by 1% to R10 billion as global fish oil prices normalised following the recovery of the Peruvian anchovy resource. Operating profit decreased by 23% to R1.3 billion, while profit after tax decreased by 35% to R724 million, largely due to higher interest costs.
Oceana CEO Neville Brink said: “We have controlled what we can well, with most key indicators improving. The African and US fishmeal and fish oil businesses delivered strong operational performances, but softer global fish oil prices impacted revenue and profitability. Lucky Star Foods was solid as ever in a tough operating environment, and the Wild Caught Seafood segment delivered a notable turnaround, with operating profit significantly higher. This demonstrates the resilience of our diversified business model.”
The Group declared a total dividend of 285 cents per share, 42.4% lower than the previous year.
Brink said demand for Lucky Star as an affordable, available source of protein contributed to its performance. Despite a challenging consumer environment, sales volumes grew by 2% to 9.5 million cartons.
Strong export demand and expansion into canned meats drove higher sales, growing canned food’s share to nearly 10% of Lucky Star’s total sales volumes.
A 24% increase in the number of cartons produced resulted in lower unit production costs at the local fish canneries. In the previous financial year, production was impacted by an extended shutdown for factory upgrades.
Production yields rose by 6%, driven by efficiency gains achieved from the upgrades and a steady supply of good-quality frozen fish imports. Local pilchard landings increased with good fish availability, allowing the full quota to be caught. Canned meat production volumes continued to grow and doubled during the year.
The African fishmeal and fish oil business delivered a 25% increase in production volumes, with better industrial fish landings, higher pilchard trimmings from the canneries and improved fish oil yields.
A 36% increase in sales volumes was negated by US dollar prices declining 9% for fishmeal and 53% for fish oil.
Daybrook’s performance, although significantly lower than the previous year’s record, was good compared to its long-term earnings average. Gulf menhaden landings increased by 20%, with a slight reduction in fish oil yield.
This operational performance and higher opening inventory levels led to a 54% increase in fish oil sales volumes. Fishmeal sales volumes decreased slightly. Daybrook experienced similar pricing challenges to the African business, with US Dollar prices down 9% for fishmeal and 48% for fish oil.
The Wild Caught Seafood segment delivered strong results, with the hake business producing an excellent performance and record earnings. The benefits of the investment in the hake fleet were evident, with more reliable vessels able to spend more days at sea. This allowed the fleet to achieve 33% higher catch volumes, driving unit catch costs lower.
Sales volumes increased, and strong European demand resulted in improved export prices for hake, contributing to the strong performance.
On the outlook for the new financial year, Brink said Lucky Star Foods will continue to capitalise on the growing demand for affordable protein, using its strong brand and distribution network to expand in South Africa and cross-border markets, while pursuing opportunities in adjacent food categories.
Improvements in global pricing for fishmeal and fish oil are anticipated soon, after a lower-than-expected anchovy quota in Peru’s second season. Further price growth is expected over the medium- to long-term, driven by growing demand from the aquaculture and pet food industries.
The Wild Caught Seafood segment is expected to benefit from sustained demand across all species and improving resource availability in South African waters.
“Our diversification across species, markets, currencies and geographies, combined with the recent investments in our factories and fleets, positions the Group to capitalise on opportunities resulting from cyclical improvements in resource availability and market demand as well as stronger pricing,” said Brink.
