Wrap Text
Unaudited interim results for the six months ended 30 June 2025
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 GROUP LIMITED UNAUDITED INTERIM RESULTS
for the six months ended 30 June 2025
1. KEY PERFORMANCE INDICATORS
UNAUDITED UNAUDITED
SIX MONTHS SIX MONTHS
CHANGE ENDED ENDED
KEY PERFORMANCE INDICATORS % 30 JUNE 2025 30 JUNE 2024
Revenue(1) (R'000) 34 4 421 897 3 302 632
International revenue mix (%) 54 53
Gross profit (R'000) 33 1 254 032 943 987
Gross profit margin (%) 28 29
Operating profit (R'000) 104 633 375 310 971
Operating profit margin (%) 14 9
Earnings before interest and tax (EBIT) (R'000) 58 589 691 373 395
EBIT margin (%) 13 11
Profit after taxation (R'000) 71 315 041 184 758
Profit after taxation attributable to shareholders of
Sea Harvest Group Limited 87 329 963 176 269
Headline earnings (R'000) 120 317 537 144 140
Weighted average number of shares ('000) 15 335 644 290 913
Basic earnings per share (EPS) (cents) 62 98 61
Basic headline earnings per share (HEPS) (cents) 91 95 50
Net asset value (NAV) per share (cents) -8 1 242 1 354
Net debt: EBITDA(2) (times) 2.1 2.7
ZAR: Euro average exchange rate -1 20.09 20.23
ZAR: AUD average exchange rate -5 11.65 12.32
ZAR: USD average exchange rate -2 18.38 18.72
Closing share price (cents) 1 815 809
(1) On a like-for-like basis, excluding the effects of the acquisition of Sea Harvest Pelagic and Aqunion (acquired 14 May 2024), revenue increased by 13%.
(2) Earnings before interest, tax, depreciation and amortisation.
2. SHORT-FORM ANNOUNCEMENT
Sea Harvest Group delivered solid results for the six months to 30 June 2025, primarily
attributable to higher hake catch rates, significantly improved pricing and efficiency gains in
the hake business. This was complemented by good volume growth in the pelagic business
and increased milk flow in the dairy business. The abalone business experienced a difficult
first half, impacted by lower demand in Hong Kong and China, resulting in sharply lower
selling prices. As a result of the improved performance, the Group delivered HEPS of 95 cents
(2024: 50 cents, up 91%) for the period ended 30 June 2025.
Sea Harvest Group increased revenue by 34% to R4.4 billion (2024: R3.3 billion) comprising
(i) organic growth of 13% as a result of good volume growth across all businesses and
significantly improved pricing, both locally and internationally, in the hake business and
(ii) acquisitive growth of 21%.
Sea Harvest Corporation benefited from significantly improved catch rates, resulting in hake
catch volumes increasing by 15%, thereby capitalising on the 5% increase in the total allowable
catch (TAC) for 2025. Revenue increased by 19% to R2.1 billion (2024: R1.7 billion) with sales
volumes up 9%, and, with strong demand, sales prices increased by 10%. The higher volumes
and its leveraging effect on cost of sales, together with a lower fuel price, good cost control,
and foreign exchange and fuel hedge gains of R58 million, resulted in EBIT increasing by
95% to R429 million (2024: R219 million) with the EBIT margin expanding to 21% (2024: 13%).
Sea Harvest Pelagic was impacted by record low anchovy and pilchard TACs; however,
the volume constraints were offset by exceptional red-eye catches and fish oil yields. Good
production throughput, increased sales volumes, good cost control, and canned product price
increases offset some of the effects of the lower fishmeal and fish oil pricing. As a result of
the inclusion of the business for the full six-month period, revenue increased by 129% to
R879 million (2024: R384 million) while EBIT increased by 16% to R144 million
(2024: R124 million) at a 16% EBIT margin (2024: 32%).
Sea Harvest Aquaculture experienced a challenging period as market conditions continued
to deteriorate and was impacted by lower demand resulting in sharply lower selling prices
(26% lower). Revenue for the six months to 30 June 2025 increased by 63% to R166 million
(2024: R102 million), benefiting from the inclusion of Aqunion for the full period. The segment
delivered operating profit of R7.7 million (2024: R13.3 million loss). However, lower selling
prices and a stronger rand negatively affected the valuation of biological assets resulting in
fair value losses of R41 million for the period (2024: R41 million fair value gain) and leading to
the segment recording a loss before interest and tax of R39 million (2024: R27 million EBIT).
The Cape Harvest Foods segment benefited from increased milk flow and a stable milk price.
Segment revenue increased by 24% to R975 million (2024: R787 million) with sales volumes
increasing by 15% benefiting from markets more in balance, while realisations increased by 9%
driven by a higher value product mix. As a result of volume efficiencies and good cost control
at Ladismith, the segment increased EBIT by 73% to R61 million (2024: R35 million) at an EBIT
margin of 6% (2024: 4%).
Sea Harvest Australia increased revenue by 7% to R455 million (2024: R424 million) driven
by improved pricing and a strong performance from the engineering business. Benefiting
from excellent operational performances across fisheries and the cost-saving initiatives
implemented, the segment delivered EBIT of R0.3 million (2024: R15 million loss before
interest and tax) for the six months to 30 June 2025. Due to the seasonality of the business,
sales and profitability are weighted towards the second half of the year.
Sea Harvest Group EBIT increased by 58% to R590 million (2024: R373 million) with the EBIT
margin expanding to 13% (2024: 11%).
Net finance costs increased to R140 million (2024: R128 million) as a result of higher levels of
debt arising from the acquisitions in May 2024, and the investment in working capital during
the period.
Profit after tax attributable to shareholders of Sea Harvest increased by 87% to
R330 million (2024: R176 million) and headline earnings increased by 120% to R318 million
(2024: R144 million).
Basic EPS increased by 62% to 98 cents (2024: 61 cents) and basic HEPS increased by 91% to
95 cents (2024: 50 cents).
OUTLOOK
Sea Harvest Corporation: With improved catch rates as well as sustained firm demand and
pricing for hake and horse mackerel, management is cautiously optimistic that the business will
deliver a firm second-half performance.
Sea Harvest Pelagic's performance is weighted to the first half of the year. The low pilchard
TAC will be compensated through increased imports to service firm canned fish markets.
Globally, with Peru not having caught its full quota, fishmeal and fish oil prices are expected
to settle.
The economic and market factors in China and Hong Kong prevalent during 2024 have
continued into 2025 and remain stubbornly set to impact financial performance in Aquaculture
in the short to medium term, with a negative outlook for H2 performance.
Within Ladismith, indications are that incremental price increases are expected on the back of
markets more in balance, allowing Ladismith to benefit from the increased milk flow.
Australian fishing operations are expected to maintain reasonable catch rates within the
Exmouth, Pilbara and Kimberley fisheries, while the Shark Bay fishery is being closely
monitored to assess the impact that a prolonged marine heat wave has had on the biomass.
Competition from farmed and overseas operators is impacting markets with the outlook for
prawn pricing in H2 uncertain. The engineering division is expected to continue performing
strongly while the benefits of the cost-saving initiatives in the first period of the year are
expected in H2 2025.
The Board wishes to thank management and employees for their loyalty, dedication, care, and
professionalism in contributing to the success of the Group.
The directors of the Group take full responsibility for the preparation of this announcement.
This announcement has not been audited by the Group's external auditors.
This announcement is a summary of the information contained in the full announcement and
does not contain full or complete details. Any investment decisions by investors or shareholders
should be based on consideration of the full announcement as a whole.
The full announcement can be found at:
https://senspdf.jse.co.za/documents/2025/jse/isse/shge/SHGHY2025.pdf
Copies of the full announcement are also available for viewing on the Group's website at:
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.
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 2025.
1 September 2025
Sponsor: The Standard Bank of South Africa Limited
Date: 01-09-2025 07:05:00
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