Sea Harvest buoyed by Viking deal


Sea Harvest buoyed by Viking deal

Published Date: 2019-03-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sea Harvest buoyed by Viking deal

The acquisition has offset flat revenue in the fishing group's home market and lower revenue from Australia.

Sea Harvest's acquisition of Viking Fishing and Viking Aquaculture last year has given its revenue for the year a big lift. If it hadn't bought them, the seafood and fisheries group said SA revenue would have been flat after a 5% reduction in Total Allowable Catch offset the benefits of global sourcing, a weaker rand and firm pricing. Australian subsidiary Mareterram reported a 9% decline in revenue. That was due to a 35% reduction in prawn catch during the season, partly offset by higher prices.

Revenue rose 21% to R2.58 billion in the year to end-December while operating profit was 16% up at R389 million. It's reported an 18% improvement in headline earnings to R278 million but headline earnings per share were just 3.7% up at 112c due to a higher number of shares in issue after it's 2017 listing on the JSE. It's raised its dividend by 29% to 40c per share.

The group said global demand for high value, wild caught seafood should drive continued growth and support pricing for its local catch, while the local wholesale market provided a new channel for the distribution of fresh fish into the informal trade where pricing is expected to remain stable.

It said its 2019 earnings would benefit from an improved earnings trajectory, as well as the inclusion of twelve months of earnings from Viking Aquaculture as opposed to six months in 2018.

Its shares declined by 1.2% to R13.64 yesterday.

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