Wrap Text
Unaudited Condensed Consolidated Interim Results For The Six Months Ended 31 March 2025
OCEANA GROUP LIMITED
Incorporated in the Republic of South Africa
Registration number : 1939/001730/06
JSE/A2X share code : OCE
NSX share code : OCG
OTCQX share code : OCGPF
ISIN : ZAE000025284
("Oceana" or "the Company" or "the Group")
UNAUDITED CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED
31 MARCH 2025 AND CASH DIVIDEND DECLARATION
SALIENT FEATURES
March March
2025 2024* %
Rm Rm change
Revenue 5186 5041 2.9
Operating profit 676 1017 (33.5)
Profit after tax 402 716 (43.7)
Earnings per share (cents) 323.2 587.6 (45.0)
Headline earnings per share (cents) 324.9 578.8 (43.9)
Dividend per share (cents) 110.0 195.0 (43.6)
*Prior period
GROUP OVERVIEW
An improved performance in the South African (SA) businesses partially offset the decline in the
Group's profitability for the period. Lucky Star foods delivered strong results, supported by steady
consumer demand, increased local production volumes, and greater operational efficiencies
following recent capital investment. Improved landings and plant performance contributed to
better results in the Fishmeal and fish oil (Africa) segment, while the Wild caught seafood
segment benefited from stronger hake catches in the second quarter combined with firm pricing.
Global fish oil pricing corrected over the period following the recovery in Peruvian anchovy
resource and production levels, with the lower fish oil price mainly responsible for the 43.9%
decrease in the Group's headline earnings per share.
Revenue increased by 2.9% to R5.2 billion (March 2024: R5.0 billion), primarily due to increased
sales volumes of canned foods, fishmeal and fish oil, hake and Namibian horse mackerel,
together with firm pricing in Wild caught seafood. This revenue growth was offset by lower sales
pricing for fishmeal and fish oil.
Gross profit margin decreased to 27.8% (March 2024: 34.1%), attributable to lower fishmeal and
particularly fish oil prices and a higher proportion of lower-value bycatch and increased quota
costs, in Namibian horse mackerel. The Lucky Star foods margin increased, driven by the higher
local production volumes and improved efficiencies following cannery upgrades in the previous
financial year.
Operating profit decreased by 33.5% to R676 million (March 2024: R1 017 million) mainly due to
the lower gross margin at Daybrook. The growth in overhead expenditure at 3.4% was contained
below inflation. Operating profit for the current period includes R28 million insurance proceeds
related to Wild caught seafood vessel breakdown losses incurred in the prior year, compared to
R8 million in Covid-19 business interruption insurance proceeds included in March 2024.
Net interest expense increased to R144 million (March 2024: R93 million) due to higher
borrowing levels to fund the capital expenditure programme implemented over the past two years
and the investment in working capital during the current period. The renewal of the interest rate
swap in the United States (US) in February 2024 at higher rates, which hedged 50% of the US debt,
further contributed to the increased interest expense.
The effective tax rate increased to 24.3% (March 2024: 22.5%) due to the reduced earnings from
the US business, which is taxed at a lower rate.
Profit after tax decreased by 43.7% to R402 million (March 2024: R716 million) driven mainly by
the decline in operating profit of the Fishmeal and fish oil (USA) segment and an increase in the
net interest expense.
CASH FLOW AND FINANCIAL POSITION
The Group's net debt increased to R3 498 million at the end of the period (March 2024: R2 461
million), primarily to fund working capital requirements. The increase in working capital was
driven by higher imports of frozen fish during the period, resulting in higher inventory levels. This
strategic procurement decision was taken to ensure consistent supply and to optimise quality
and yields.
The higher working capital investment, combined with lower cash operating profit, resulted in
cash generated from operations decreasing to R10 million (March 2024: R634 million),
The Group's net debt to EBITDA ratio accordingly increased to 2.2 times (March 2024: 1.2 times).
The SA lender covenant leverage ratio for the March 2025 measurement date was increased from
2.5 times to 3.0 times, due to the higher working capital requirements. The Group complied with
all lender covenant requirements relating to both its SA and US debt.
Capital expenditure was R183 million (March 2024: R297 million), primarily related to dry docks
and further upgrades to the hake and horse mackerel fleet, including the Desert Jewel freon
conversion.
REVIEW OF OPERATIONS
Revenue and operating profit by segment for the period:
Rm Revenue Operating Profit
Unaudited Unaudited Unaudited Unaudited
six six six six
months months % months months %
ended 31 ended 31 Change ended 31 ended 31 Change
Segmental March March March March
results 2025 2024* 2025 2024*
Lucky Star foods 2 587 2 342 10.4% 230 170 35.9%
Fishmeal and
281 205 37.0% (5) (18) 72.0%
fish oil (Africa)
Fishmeal and
1 464 1 734 (15.6%) 377 848 (55.6%)
fish oil (USA)
Wild caught
854 760 12.4% 74 17 336.0%
seafood
5 186 5 041 2.9% 676 1 017 (33.5%)
Total
*As of September 2024, the Group's segmental reporting has been revised to separately disclose Lucky Star foods
and Fishmeal & fish oil (Africa) as two segments.
LUCKY STAR FOODS
Lucky Star foods delivered a strong performance with total sales volumes increasing by 5.0% to
a record volume of 5.1 million cartons for the interim period (March 2024: 4.8 million cartons).
Consistent volume growth was experienced across all customer channels driven by steady
demand for affordable protein. Lucky Star foods continued with its brand and range expansion
strategy, delivering pleasing volume growth in both local and export markets, particularly in the
canned meat category. Market entry into West Africa further supported canned fish volumes.
Local canning production volumes increased significantly to 2.9 million cartons (March 2024: 1.5
million cartons) with the prior period having been impacted by factory closures to implement
upgrades. The higher production levels contributed to margin improvement together with
operational efficiencies from the recent factory upgrades, a favourable increase in local pilchard
landings to 8 881 tons (March 2024: 2 962 tons), and a consistent supply of good size and high-
quality frozen fish imported during the period.
Inventory levels closed 41.4% higher compared to the previous period, reflecting the impact of
increased production throughput and higher frozen fish imports.
FISHMEAL AND FISH OIL (FMO)
FMO (AFRICA)
The African fishmeal and fish oil business delivered an improved performance despite lower
fishmeal and fish oil prices. This improvement was driven by a 77.0% increase in sales volumes
to 8 930 tons (March 2024: 5 044 tons) combined with efficiency gains, improved production
throughput and enhanced product quality following the recent factory upgrades. Higher landings
of industrial fish of 48 542 tons (March 2024: 30 126 tons) and trimmings from Lucky Star foods'
canneries supported the volume growth. Overall, production yields improved to 25.8% (March
2024: 24.2%) with better quality fish generating higher oil yields.
Inventory levels closed 53.0% higher than the prior period.
FMO (USA)
Daybrook's financial performance declined in comparison to the record first-half prior year
results, primarily due to a correction in fish oil prices. The decline in fish oil pricing was driven by
the recovery of the Peruvian anchovy resource, previously constrained by El Niño climate
conditions, which led to the normalisation of global fishmeal and fish oil supply.
The impact of lower pricing was partially offset by a 12.6% increase in fishmeal sales volumes to
21 589 tons (March 2024: 19 178 tons) and 50.8% increase fish oil sales volumes to 14 586 tons
(March 2024: 9 671 tons), enabled by effective inventory management and forward sales
contracting.
Daybrook's operating profit margin decreased primarily due to a 44.9% decrease in average fish
oil prices and a 10.1% decrease in average fishmeal prices compared to the prior year.
Inventory levels closed 34.8% lower than the prior period.
WILD CAUGHT SEAFOOD
HAKE
The Hake operations delivered a solid performance for the period. Catch volumes increased by
14.6% due to increased sea days and improved catch rates following recent investment in the
fleet. Consequently, sales volumes increased by 13.2% to 5 576 tons (March 2024: 4 925 tons).
Demand and pricing for Hake remain strong, supported by a shortage of other white fish species
in Europe and globally. Increased focus on maximising catch volumes led to better fixed cost
recovery, enhancing profitability during the period.
HORSE MACKEREL
Fishing in South Africa was limited, with the Desert Diamond operating in Namibia for most of the period
due to low catch rates persisting in South African waters.
In Namibia, catch rates were consistent with the prior period, however seadays were lower due
to the Desert Jewel freon conversion and completion of the Desert Ruby engine overhaul.
Following its Namibian deployment, the Desert Diamond supported operations by providing
additional catch capacity. The Namibian performance declined due to a 14.0% increase in catch
costs driven by higher fuel and quota costs and a higher proportion of lower-value by-catch.
Total horse mackerel sales volumes increased by 2.9% to 19 431 tons (March 2024: 18 882 tons).
Market conditions remained strong, with stable demand supporting a 3.8% increase in the
average US Dollar sales price.
SQUID
Following a slow start, the squid fishing season gained momentum in January, with volumes
landed improving to 263 tons (March 2024: 115 tons). Sales volumes increased due to higher
opening stock and higher catches. Demand from European markets remains strong.
LOBSTER
West Coast Rock Lobster delivered a solid performance, supported by higher catch volumes from
an increased total allowable catch (TAC) but tempered by a 14% decline in prices due to softer
demand. South Coast Rock Lobster experienced lower catch rates and prices due to a
constrained consumer environment.
DIVIDEND
The Group declared an interim dividend of 110 cents (2024: 195 cents) per share.
OUTLOOK
The operating environment for the Fishmeal and fish oil segments is expected to become more
challenging amid softer global prices, compounded by the recent Peruvian anchovy first season
TAC announcement of 3.0 million tons (March 2024: 2.5 million tons) and strong catches to date.
The US gulf menhaden fishing season started mid-April and will run for 28 weeks to the end of
October. Early season landings at the end of week 6 are on par with the last season. Daybrook
continues to monitor the evolving global tariff landscape. In response to the uncertainty around
US-China tariffs, Daybrook is focusing on domestic petfood sales and exploring alternative
market opportunities for fishmeal.
The FMO SA business will continue to focus on driving production efficiencies and product
quality, but an anticipated anchovy TAC reduction due to a cyclically low biomass will temper
results.
Lucky Star foods aim to sustain volume growth by leveraging its affordability and availability
strategy, while expanding its brand and product range in the broader food sector and into new
geographies. The strong inventory position will continue to support our ability to meet demand in
the second half. Fishing operations and cost recoveries will be negatively impacted by the delay
in the announcement of the final pilchard TAC.
The Wild caught seafood segment will continue to optimise vessel utilisation to leverage firm
market demand.
The Group continues to prioritise reducing debt, along with the prudent management of costs
and capital expenditure. The anticipated unwind of Lucky Star inventory levels in the second half
will support a decrease in short-term borrowings.
Any forward looking statements in this announcement have not been reviewed or reported on by
the Company's external auditors.
Mustaq Brey Neville Brink
Chairman Chief Executive Officer
Cape Town
5 June 2025
DECLARATION OF INTERIM DIVIDEND NUMBER 162
Notice is hereby given that the Board of Directors of Oceana has declared an interim gross
cash dividend per share of 110 cents per share, out of current earnings, in respect of the
period ended 31 March 2025. Where applicable, the deduction of dividends withholding tax
at a rate of 20% will result in a net dividend amounting to 88 cents per share.
The issued share capital at the declaration date is 129 779 645 ordinary shares. The
Company's tax reference number is 9675/139/71/2. The relevant dates for the dividend will
be as follows:
Last day to trade cum dividend Tuesday, 24 June 2025
Commence trading ex-dividend Wednesday, 25 June 2025
Record date Friday, 27 June 2025
Dividend payment date Monday, 30 June 2025
Share certificates may not be dematerialised or rematerialised between Wednesday, 25 June 2025
and Friday, 27 June 2025 (both dates inclusive).
This short-form announcement is the responsibility of the directors and is a summary of the
information in the condensed consolidated interim results and does not contain full or complete
details. Any investment decision should be based on the full announcement which is available on
our website: https://results.oceana.co.za/interim-results-2025 on
https://senspdf.jse.co.za/documents/2025/jse/isse/oce/HY25.pdf as well as via our JSE sponsor
at jsesponsor@standardbank.co.za.
Group Company Secretary
Cape Town
9 June 2025
JSE Sponsor – Primary Listing
The Standard Bank of South Africa Limited
NSX Sponsor – Secondary Listing
Old Mutual Investment Services (Namibia) (Proprietary) Limited
Date: 09-06-2025 07:05:00
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