SEA HARVEST GROUP LIMITED - Sea Harvest unaudited interim results for the six months ended 30 June 2021

Sea Harvest unaudited interim results for the six months ended 30 June 2021

Sea Harvest Group Limited
Incorporated in the Republic of South Africa
Reg no: 2008/001066/06
JSE share code: SHG ISIN: ZAE000240198
"Sea Harvest" or "the Company" or "the Group"

SEA HARVEST UNAUDITED INTERIM RESULTS
for the six months ended 30 June 2021

1. Key performance indicators
KEY PERFORMANCE INDICATORS                                PERIOD ENDED  PERIOD ENDED
                                                               30 JUNE       30 JUNE
                                                  CHANGE          2021          2020
Revenue (R'000)                                       5%     2 103 926     1 999 648
International revenue mix (%)                                       44            46
Gross profit (R'000)                                  2%       676 515       665 636
Gross profit margin (%)                                             32            33
Operating profit (R'000)                             26%       323 429       256 992
Operating profit margin (%)                                         15            13
Profit for the period (R'000)                        29%       199 336       154 778
Headline earnings (R'000)                            19%       202 226       169 964
Weighted average number of shares ('000)              1%       280 674       278 604
Basic headline earnings per share (HEPS) (cents)     18%          72.1          61.0
Net asset value per share (cents)                    20%       1 021.0         849.3
ZAR: Euro average exchange rate1                      5%         17.42         18.41
ZAR: AUD average exchange rate1                       0%         11.09         11.12
Closing share price (cents)                                      1 365         1 414
1 Average spot exchange rate at which sales were recorded.

2. Short-form announcement

Continuing the sound performance of 2020 and despite the ongoing volatility caused by COVID-19, Sea Harvest proved its resilient and defensive nature in
delivering headline earnings for the period ended 30 June 2021 of R202 million (2020: R170 million), 19% ahead of 2020, while earnings per share increased
27% to 77.7 cents per share (2020: 61.0 cents per share).

Group revenue for the period increased 5% to R2.1 billion (2020: R2.0 billion), benefiting from good performances from the South African Fishing segment
which increased revenue 2% to R1.32 billion (2020: R1.29 billion) despite a 5% reduction in the total allowable catch (TAC) in early 2021 and a 5%
strengthening in the rand.

The Cape Harvest Foods segment (which includes Ladismith Cheese) also performed well, delivering revenue of R516 million (2020: R470 million), 10% higher
than 2020 driven by higher volumes and firm pricing, while Sea Harvest Australia continued its strong trajectory and delivered a 2% increase in revenue to
R231 million (2020: R226 million).

The Aquaculture segment, while showing an improving revenue trend and more than doubling revenue to R36 million (2020: R15 million), continues to be
severely impacted by the effects of COVID-19.

With cost of sales increasing 7% as a result of inflation, gross profit for the period increased 2% to R677 million (2020: R666 million), with the gross
profit margin at 32% (2020: 33%).

Net operating expenses decreased to R353 million (2020: R409 million), including R51 million in foreign exchange and fuel hedge gains (2020: R32 million
hedge losses) and R17 million (2020: Nil) of insurance income; however, operating expenses were negatively impacted by supply chain disruptions, increased
selling and distribution costs, increased depreciation, and above-inflation cost increases in certain categories, including the flow-through effects of
COVID-19.

Despite the 5% reduction in the TAC in 2021, a stronger rand, above-inflation cost increases, additional COVID-19 related costs and a R37 million (2020:
R39 million) operating loss in the Aquaculture segment, the Group, benefiting from its sound hedging strategy, delivered operating profit before fair value
(losses)/gains and associate (loss)/income of R323 million (2020: R257 million) for the period, 26% higher than the prior period, with the operating profit
margin expanding to 15% (2020: 13%).

Net finance costs, which include investment income and interest expense, decreased to R29 million (2020: R48 million) as a result of lower interest rates
during the period.

Profit after tax attributable to shareholders of Sea Harvest for the period increased 29% to R218 million (2020: R169 million), while headline earnings
increased 19% to R202 million (2020: R170 million). Basic HEPS increased 18% to 72.1 cents per share (2020: 61.0 cents per share).

Sea Harvest Group is proud to have retained a Level 1 B-BBEE contributor status.

Driving transformation within Sea Harvest, and the fishing industry more broadly, is central to Sea Harvest's existence and strategy. Accordingly, the
Group invests significant resources in skills development, employment equity, supplier and enterprise development initiatives, as well as projects focused
on job creation, the youth, and rural development.

The Sea Harvest Foundation continued its good work on community-based projects in all locations in which the Group operates, with projects including the
provision of bursaries, healthcare initiatives, early childhood development, donations and supporting youth sports development.

Sea Harvest is a co-founding member of the South African Fisheries Development Fund, a joint initiative with Brimstone. The Fund was established to empower
small-scale businesses in the fishing and allied sectors.

The Group has experienced 796 positive COVID-19 cases to date, with an 88% recovery rate. Regrettably, the Group has lost eight employees to COVID-19 to
date and we extend our deepest sympathies to the families of all those who have been severely affected.

A focused approach of securing and administering COVID-19 vaccines to the Sea Harvest Group's employees has progressed well with the first vaccines
administered onsite on 23 July 2021. The Group continues to actively explore options to encourage vaccination and increase the number of employees
vaccinated for the various sites in the Group to reach immunity as soon as possible.

With effect from 2 August 2021, Sea Harvest has, through Ladismith Cheese, acquired 100% of the issued capital of Mooivallei Suiwel Proprietary Limited
(Mooivallei).

Based in Bonnievale in the Western Cape, Mooivallei is a producer and supplier of dairy products with its main products of cheese and butter sold into the
retail and non-retail channels in South Africa. The Mooivallei acquisition complements Ladismith Cheese through 40% additional cheese production capacity,
raw material supply, access to industry skills and expertise, a strong asset base and additional working capital.

The Board would like to thank management and employees for their loyalty, dedication, care and professionalism in contributing to the success of the Group.

The interim results have not been reviewed or reported on by the Group's external auditors.

This short-form announcement is the responsibility of the directors of the Group. It contains only a summary of the information in the full announcement
and does not contain full or complete details. The full announcement can be found at: https://senspdf.jse.co.za/documents/2021/jse/isse/shge/SHGHY2021.pdf

Copies of the full announcement are also available for viewing on the Group's website at: http://www.seaharvestgroup.co.za or may be requested in person, at the
Group's registered office or the office of the sponsor, at no charge, during office hours.

Any investment decisions by investors and/or shareholders should be based on consideration of the full announcement, as a whole.

3. Cash dividend declaration

In accordance with the Group's dividend policy, no interim dividend is declared or proposed for the six months ended 30 June 2021.

Date: 30 August 2021

Sponsor: The Standard Bank of South Africa Limited

Date: 30-08-2021 08:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.