CHAMWE KAIRA
Oceana Group Limited said in results for 11 months ended 25 August 2024 that horse mackerel performance in Namibia was negatively impacted by a combination of lower sales volumes, resulting from decreased catch rates, and weaker market prices.
In addition, vessel operating costs rose by 19% due to the lower catch rates impacting cost recovery and higher fuel costs stemming from the use of higher priced intermediate fuel oil for the entire period.
The group disposed of its interest in Commercial Cold Storage Logistics Group Limited (CCS) and realised a profit of N$477 million before taxation and N$381 million after taxation, directly translating to an increase in earnings per share of 314.4 cents in the previous year. This profit had no impact on headline earnings per share in the previous year, being excluded for headline earnings purposes. The group’s results for the year ending 30 September 2024 are expected to be released on 25 November.
The group said it has performed well for the 11 months ended 25 August 2024. Its subsidiary, Daybrook continued building on the strong first half performance while consistent demand for affordable protein underpinned Lucky Star’s performance. The group’s results for the period were tempered by the disappointing performance of both the South African and Namibian horse mackerel businesses in the Wild Caught Seafood segment.
Lucky Star sales volumes declined 2% in the period, off the back of record volumes sold in the comparative 11-month period.
Lucky Star continues to drive growth of canned fish through product affordability, availability and versatility, and optimise its recent canned meat and chicken liver investments to capitalise on its brand strength and wide distribution reach.
Oceana said following the decision in the first half to close both West Coast plants earlier than usual to implement factory upgrades, production volumes declined by 26% for the period. The second half saw a return to full production, with enhanced efficiencies and improved margins resulting from higher volumes of locally landed fresh pilchards. Inventory closed at similar levels to the comparative 11-month period.
Africa fishmeal and fish oil sales volumes decreased by 16% due to lower opening inventory levels and lower volumes produced in the period.
“Raw material available for production in the period declined due to the combined effect of reduced pilchard trimmings from the cannery and lower anchovy landings, which were affected by prolonged adverse winter weather conditions.”
The company said improved oil yields, strong US Dollar fish oil prices and the weaker rand exchange rate partly offset the impact of lower sales volumes. Additionally, the recent plant upgrades have yielded benefits through increased efficiency and enhanced product quality, the company said
Oceana said the operating performance of the hake business showed a marked improvement for the period.
Hake sales volumes increased by 31% with improved sea days and catch rates resulting in a better fleet performance.