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OCE - Oceana Group Limited - Interim Report and Dividend Declaration for the
Six Months Ended 31 March 2009
OCEANA GROUP LIMITED
Incorporated in the Republic of South Africa
(Registration Number 1939/001730/06)
JSE Share Code: OCE
ISIN Number: ZAE000025284
NSX Share Code: OCG
INTERIM REPORT AND DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 MARCH 2009
The unaudited results of the group for the six months ended 31 March 2009 are
set out herein.
This report has been prepared in compliance with International Financial
Reporting Standards (IFRS) applicable to Interim Financial Reporting (IAS 34)
and in accordance with the principles applied in the most recently published
annual financial statements.
Directors:
MA Brey (Chairman), RA Williams (Vice Chairman), RG Nicol* (Acting Chief
Executive Officer), PG de Beyer, ABA Conrad*,
M Fleming, P Matlare, S Pather, F Robertson (*Executive)
Company Secretary: JD Cole
Registered Office: 16th Floor, Metropolitan Centre, 7 Coen Steytler Avenue,
Cape Town 8001
Transfer Secretaries: Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg, 2001
(P.O. Box 61051, Marshalltown, 2107)
Sponsor: The Standard Bank of South Africa Limited
CONDENSED GROUP INCOME STATEMENT Unaudited Audited
six months ended year ended
31 March 30 Sept
2009 2008 Change 2008
Note R`000 R`000 % R`000
Revenue 1,620,760 1,303,241 24 3,002,476
Operating profit before
abnormal items 174,111 102,770 69 317,284
Abnormal items 1 3,416 (497) 11,725
Operating profit 177,527 102,273 74 329,009
Dividends received and accrued 11,624 9,075 19,103
Net interest received 3,856 5,903 10,311
Profit before taxation 193,007 117,251 65 358,423
Taxation 63,093 39,989 58 104,153
Profit after taxation 129,914 77,262 68 254,270
Attributable to:
Shareholders of Oceana Group Ltd 122,504 74,749 64 246,073
Outside shareholders in
subsidiaries 7,410 2,513 195 8,197
129,914 77,262 68 254,270
Weighted average number of
shares on which earnings per
share are based (000`s) 2 98,998 98,686 98,721
Adjusted weighted average
number of shares on which
diluted earnings per share
are based (000`s) 101,527 99,623 100,144
Earnings per share (cents)
Basic 123.7 75.7 63 249.3
Diluted 120.7 75.0 61 245.7
Dividends per share (cents) 31.0 26.0 19 156.0
Headline earnings per share (cents)
Basic 120.8 76.2 59 237.7
Diluted 117.8 75.5 56 234.3
DIVIDEND DECLARATION
Notice is hereby given that an interim dividend No. 131 of 31 cents per share,
in respect of the year ending 30 September 2009, was declared on Thursday 7
May 2009. Relevant dates are as follows:
Last day to trade cum dividend - Friday 26 June 2009
Commence trading ex dividend - Monday 29 June 2009
Record date - Friday 3 July 2009
Dividend payable - Monday 6 July 2009
Share certificates may not be dematerialised or re-materialised between
Monday 29 June 2009 and Friday 3 July 2009, both dates inclusive.
By order of the board
JD Cole Secretary
7 May 2009
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
Unaudited Audited
six months ended year ended
31 March 30 Sept
2009 2008 2008
R`000 R`000 R`000
Balance at the beginning of the period 999,558 905,522 905,522
Shares issued 11,294 8,576 9,588
Increase in treasury shares held by
subsidiary (52,302) (52,302)
Decrease in treasury shares
held by share trusts 992 22 1,282
Movement on foreign currency
translation reserve (6,324) 15,315 (2,974)
(Loss)/gain on cash flow hedges (3,357) 6,734
Recognition of share-based payments 3,920 4,148 7,865
Profit after taxation 129,914 77,262 254,270
Loss on sale of treasury shares (25) (53)
Dividends declared (135,429) (98,093) (123,640)
Balance at the end of the period 1,000,568 867,159 999,558
Comprising:
Share capital and premium 14,656 98 2,370
Foreign currency translation reserve 16,052 40,665 22,376
Cash flow hedge reserve (3,357) 6,734
Share-based payment reserve 28,502 20,966 24,616
Capital redemption reserve 130 130 130
Distributable reserves 914,449 774,685 920,434
Outside shareholders interest 30,136 23,881 29,632
Total 1,000,568 867,159 999,558
CONDENSED GROUP BALANCE SHEET
Unaudited Audited
31 March 30 Sept
2009 2008 2008
R`000 R`000 R`000
Assets
Non-current assets 524,188 462,802 516,084
Property, plant and equipment 342,225 262,731 334,147
Goodwill 21,720 25,525 23,544
Fishing rights and trademarks 20,064 36,167 21,749
Deferred taxation 6,577 9,340 5,386
Investments and loans 133,602 129,039 131,258
Current assets 1,060,673 831,510 1,039,398
Inventories 491,667 294,782 344,458
Accounts receivable 467,928 386,469 424,405
Cash and cash equivalents 101,078 150,259 270,535
Total assets 1,584,861 1,294,312 1,555,482
Equity and liabilities
Equity 1,000,568 867,159 999,558
Interest of own shareholders 970,432 843,278 969,926
Interest of outside shareholders 30,136 23,881 29,632
Non-current liabilities 60,264 40,304 59,690
Liability for share-based payments 18,227 9,116 14,957
Deferred taxation 42,037 31,188 44,733
Current liabilities 524,029 386,849 496,234
Accounts payable and provisions 443,670 343,418 443,832
Bank overdrafts 80,359 43,431 52,402
Total equity and liabilities 1,584,861 1,294,312 1,555,482
Number of shares in issue net of
treasury shares (000`s) 99,150 98,209 98,371
Net asset value per ordinary share (cents)979 859 986
Total liabilities excluding deferred
taxation: Total equity (%) 54 46 51
Total borrowings: Total equity(%) 8 5 5
CONDENSED GROUP CASH FLOW STATEMENT
Unaudited Audited
six months ended year ended
31 March 30 Sept
2009 2008 2008
R`000 R`000 R`000
Cash flows from operating activities
Operating profit before abnormal items 174,111 102,770 317,284
Adjustment for non-cash items 37,110 34,650 83,045_
Operating cash flows before working
capital changes 211,221 137,420 400,329
Working capital changes (196,574) (71,991) (79,496)
Cash generated from operations 14,647 65,429 320,833
Interest and dividends received 11,363 11,529 20,998
Interest paid (4,157) (2,990) (6,464)
Taxation paid (68,689) (50,693) (84,623)
Dividends paid (133,925) (98,093) (123,640)
Net cash (outflow)/inflow from
operating activities (180,761) (74,818) 127,104
Cash (outflow)/inflow from investing
activities (28,632) 3,268 (87,526)
Capital expenditure (38,792) (17,745) (127,511)
Proceeds on disposal of property,
plant and equipment 814 57 2,478
Net movement on loans and advances 5,930 (1,238) 3,470
Cash related abnormal items 3,416 4,546
Net disposal and acquisition of
businesses 22,194 21,312
Proceeds on disposal of fishing rights 7,728
Proceeds on disposal of investments 451
Cash inflow/ (outflow) from financing
activities 16,545 (41,810) (41,583)
Proceeds from issue of share capital 12,286 8,576 10,817
Short-term borrowings raised /(repaid)4,259 1,918 (98)
Acquisition of treasury shares
by subsidiary (52,304) (52,302)
Net decrease in cash and cash
equivalents (192,848) (113,360) (2,005)
Cash and cash equivalents at the
beginning of the period 218,133 218,369 218,369
Effect of exchange rate changes (4,566) 1,819 1,769
Cash and cash equivalents at the
end of the period 20,719 106,828 218,133
CONDENSED GROUP SEGMENTAL REPORT
Unaudited Audited
six months ended year ended
31 March 30 Sept
2009 2008 2008
R`000 R`000 R`000
Revenue
Inshore fishing 983,895 783,331 1,879,711
Midwater and deep-sea fishing 555,533 445,681 934,384
Commercial cold storage 81,332 74,229 188,381
Total 1,620,760 1,303,241 3,002,476
Operating profit before abnormal items
Inshore fishing 58,838 28,649 164,345
Midwater and deep-sea fishing 96,473 52,933 94,267
Commercial cold storage 18,800 21,188 58,672
Total 174,111 102,770 317,284
Total assets
Inshore fishing 809,616 650,020 697,947
Midwater and deep-sea fishing 357,172 203,824 283,247
Commercial cold storage 176,816 151,830 165,557
Financing 234,680 279,298 403,345
1,578,284 1,284,972 1,550,096
Deferred taxation 6,577 9,340 5,386
Total 1,584,861 1,294,312 1,555,482
Total liabilities
Inshore fishing 245,025 217,108 324,220
Midwater and deep-sea fishing 177,575 105,596 102,703
Commercial cold storage 33,900 26,676 34,247
Financing 85,756 46,585 50,021
542,256 395,965 511,191
Deferred taxation 42,037 31,188 44,733_
Total 584,293 427,153 555,924
NOTES
Unaudited Audited
six months ended year ended
31 March 30 Sept
2009 2008 2008
R`000 R`000 R`000
1. Abnormal items
Reversal of provision for loans in
Namibian whitefish business 3,416 5,395
Profit on change of interest in business 1,382 809
Impairment loss on Western Australia
lobster fishing rights (1,476) (1,476)
Profit on disposal on Western Australia
lobster fishing rights 4,565
Net surplus on disposal of property,
plant and equipment 1,684
Profit on disposal of investment 243
Reversal of provision for irrecoverable
loans 505
Provision in respect of utilisation of
pension fund surplus (403)
Abnormal profit/(loss) before taxation 3,416 (497) 11,725
Taxation (1,196) (242) (319)
Abnormal profit/(loss) after taxation 2,220 (739) 11,406
Number Number Number
of shares of shares of shares
`000 `000 `000
2. Elimination of treasury shares
Weighted average number of shares
in issue 118,345 117,587 117,610
Less: treasury shares held by
share trusts (14,253) (14,387) (14,375)
Less: treasury shares held by
subsidiary company (5,094) (4,514) (4,514)
Weighted average number of shares on
which earnings per share and headline
earnings per share are based 98,998 98,686 98,721
R`000 R`000 R`000
3. Determination of Headline Earnings
Profit after taxation attributable to
own shareholders 122,504 74,749 246,073
Adjusted for:
Reversal of provision for loans in
Namibian whitefish business (2,220) (5,395)
Profit on change of interest in business (1,027) (615)
Impairment loss on Western Australian
lobster fishing rights 1,476 1,476
Profit on disposal of Western Australian
lobster fishing rights (4,565)
Net (surplus)/loss on disposal of
property, plant and equipment (705) 8 (1,590)
Profit on disposal of investment (243)
Reversal of provision for irrecoverable
loans (505)
Headline earnings for the period 119,579 75,206 234,636
Unaudited Audited
six months ended year ended
31 March 30 Sept
2009 2008 2008
R`000 R`000 R`000
4. Dividends
Estimated dividend declared
after reporting date 30,737 25,534 127,883
Dividend on shares issued
prior to last day to trade 13 607____
Actual dividend declared after
reporting date 25,547 128,490
5. Supplementary information
Cost of sales 1,169,169 942,988 2,131,946
Depreciation 30,688 28,406 67,255
Operating lease charges 9,223 8,704 18,876
Foreign exchange profit (24,622) (9,117) (15,770)
Capital expenditure 38,792 17,745 127,511
Expansion 21,891 3,323 89,384
Replacement 16,901 14,422 38,127
Capital commitments 74,847 135,328 125,778
Contracted 4,396 112,880 27,769
Not contracted 70,451 22,448 98,009
COMMENTS
Financial Results
Revenue for the six months ended 31 March 2009 increased by 24% compared with
the first half of the previous year. Operating profit before abnormal items
increased by 69% with the canned fish and horse mackerel businesses showing
good improvement over the prior year.
Headline earnings per share for the six months rose by 59% and earnings per
share by 63%.
An interim dividend of 31 cents per share has been declared (2008: 26 cents
per share).
Review of operations
Inshore Fishing
The 2009 Total Allowable Catch (TAC) for pilchard is 90 000 tons (2008: 90 776
tons). Pilchard landings to date have been encouraging and yields have been
good. Canned fish production was accordingly above prior year levels. The
Namibian pilchard TAC was announced as 15 000 tons (2008: 15 000 tons) and
fishing commenced in May.
Sales volumes of canned fish were higher mainly due to increased quantities of
imported product. Margins showed some improvement and Lucky Star`s market
share recovered further as a result of the higher sales.
Volumes and margins declined at Glenryck Foods in the United Kingdom as a
consequence of the depressed economic conditions there and the weakening of
sterling against the US dollar.
Overall, profit from canned fish operations was well up relative to the same
period last year.
The anchovy A season TAC for 2009 is 299 437 tons (2008: 397 500 tons).
Pelagic fishing conditions have been good and landings to the group`s fish
meal plants were higher than in the comparative period. Processing yields were
good and production costs were favourably impacted by reducing energy prices.
Selling prices for fish meal on the local and export markets were higher. Due
to the seasonal nature of fish meal operations a loss was recorded although
this was lower than in the first half of last year.
The TAC for west coast lobster was reduced to 2 340 tons (2008: 2 571 tons).
Quota available to Oceana for the current season amounts to 348 tons (2008:
373 tons). Lobster catch rates in certain fishing zones were below those of
the prior year resulting in higher catching costs per unit. Export sales
prices were lower in foreign currency but benefited from weaker exchange rates
resulting in prices being higher in rand terms. Profits from lobster declined
due mainly to lower sales volumes and higher catching costs.
A protracted strike by fishermen in the squid industry caused squid catches to
be lower than those of last year. A loss was made by this business due to the
low volumes and significantly lower euro selling prices.
Profits from the French fry operation were marginally better than the prior
year on similar volumes.
Midwater and Deep-sea Fishing
The Namibian horse mackerel TAC is unchanged at 230 000 tons. The group`s
additional (third) Namibian midwater trawler which commenced fishing in August
last year performed well. Catches in Namibia and South Africa were very good
with high catch rates per trip and an improved mix of larger fish. Volumes
were accordingly up on the comparative period last year. Good export prices
were achieved although demand has softened in recent months. Overall operating
profit from horse mackerel was significantly above that of the comparative
period.
Hake vessels performed well and operating results showed an improvement with
the effect of lower export prices being offset by the weaker rand/euro
exchange rate.
Cold Storage
Occupancy levels were generally lower as a result of a decline in customers`
import volumes although the stores at Walvis Bay and Duncan Dock, Cape Town
experienced higher utilisation. Handling activity levels of frozen product
were slightly below those in the comparative period. The expansion at the City
Deep facility was commissioned successfully in December. Operating profit for
the six months was lower.
Directorate
Mr Francois Kuttel has been appointed as group CEO with effect from 1 July
2009.
Prospects
Whilst earnings growth in the first half of the year was well ahead of last
year, performance in the second half will be affected by foreign currency
exchange rates and less favourable international market conditions. Growth in
earnings and headline earnings for the full year is expected to be at a much
lower rate than that of the first half-year. The forecast information has not
been reviewed or audited by Oceana`s auditors.
On behalf of the board.
MA Brey RG Nicol
Chairman Acting Chief Executive Officer
7 May 2009
Date: 07/05/2009 15:57:02 Supplied by www.sharenet.co.za
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