Fishing vessel belonging to Sea Harvest. (Photo: Sea Harvest)

Sea Harvest doubles earnings in 2017

Fishing group Sea Harvest doubled its earnings in 2017 thanks to the improved performance of its South African operations as a result of a strong demand for cape hake and an outstanding yield from its Saldanha Bay plants.

The Group's delivered annual earnings before interest and tax (EBIT) grew 53 per cent compared to the previous year, to ZAR 383 million (USD 32.1 million) and profit after tax increased 103 per cent, to ZAR 267 million (USD 22.3 million).

The firm pointed that export volumes and price increases partially offset the effect of the stronger rand, with strong global demand driving pricing across all markets.

The Group’s revenue for the year increased by 10 per cent in 2017, to ZAR 2.1 billion (USD 176 million).

In relation to South African operations, sales volumes for the year were 1 per cent lower than in 2016 and the total allowable catch reduced by 5 per cent which directly affected catch volumes. This reduction was largely offset by the Company's global sourcing strategy. 

Export volumes increased by 4 per cent resulting in exports accounting for 53 per cent of sales in value terms.

Sea Harvest highlights that South African operations have benefited from the significant capital investments in the fleet and factories over the past few years which has driven considerable growth in the higher margin export business. Demand for cape hake remains firm, particularly in the EU and Australia.

In Australia, revenue for the year increased by 5 per cent to ZAR 487 million (USD 40.8 million), which was driven by higher landings of prawn and scallops. Prices on prawns, scallops and crabs were well up on prior year and demand remained strong although the smaller size mix negatively impacted average realisations.

In South Africa, the Group expects to see a continued increase in the global demand for high value, wild caught, MSC certified species such as cape hake, which will drive continued export growth and price inflation, which, together with a consistent hedging policy, will seek to partially limit the impact of continued South African currency strength.

On the supply side, export growth will be supported by the introduction of an additional factory freezer vessel into the fleet, whose frozen-at-sea products are targeted towards export markets.

The Group has announced it is in advanced negotiations to acquire 51 per cent of the shares of Viking Aquaculture and, as part of a BBBEE Consortium, acquire 100 per cent of the assets of Viking Fishing which would be transformational for the Group.

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Address:	Boulevard Office Park, Searle Street - P.O. Box 761
City:	Woodstock
State/ZIP:	(7925)
Country:	South Africa
Phone:	+27 21 468 7900
Fax:	+27 21 465 5883
E-Mail:	[email protected]
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