Sea Harvest Group lifted earnings before interest and tax (Ebit) by 6% to R373 million in the six months to June 30 after significantly improved pricing and strong demand in wild-caught fish.
Group revenue increased 3% to R3.3 billion, with the performance held back by continued low hake catch rates, deteriorating market conditions in abalone markets and higher interest rates in South Africa and Australia.
“The first six months of this year have been some of the toughest months in the history of the group with the tragic sinking of the MFV Lepanto. The board, management and staff extend our deepest condolences to the families and loved ones to the 11 crewmen lost at sea,” Sea Harvest Group CEO Felix Ratheb said in a statement.
The group is providing support to the affected families and cooperating with the investigation into the incident by the South African Maritime Safety Authority.
During the period, Aqunion and Saldanha/Westpoint Fishing were acquired, diversifying the company into pelagic (anchovy and pilchard) fishing and completing the group exposure to all material wild-caught fisheries in South Africa. The abalone business doubled in size, creating an aquaculture business of scale, he said.
“This transaction has increased the group’s hard currency earnings, created a stronger merged business, increased black ownership in the fishing and abalone industries, and it broadens Sea Harvest’s shareholder base,” said chairman Fred Robertson.
The lower catch volumes in the hake fishery in South Africa resulted in lower sales volumes, offset by much improved pricing. The dairy operations at Ladismith performed well despite a tough local consumer environment, due to increased milk flow and good cost control.
While the abalone business recorded good animal stock growth, the markets were tough in the second quarter of 2024, with reduced demand and increased competition in the sector impacting selling price.
“As we continue into the second half of 2024, we look forward to the fish volumes still available to be caught by the group, supported by firm local and international hake markets, and the improvement of our second half weighted operations in Australia,” said Ratheb.
With the addition of Sea Harvest Pelagics and Aqunion and the potential decrease in of interest rates, the group looked forward to an ease in operating conditions for the rest of the year,” he said.
Sea Harvest employs some 6 500 staff and has operations in South Africa and Australia. It owns and operates 59 vessels, 8 fish operating facilities and 8 aquaculture operations. Its primary fish species are hake, small pelagics (sardine and anchovy), horse mackerel, prawns, Spanish mackerel and abalone.
BUSINESS REPORT