Oceana Group Sees Earnings Growth Amid Challenges

Oceana Group ( (OCGPF) ) has released its Q4 earnings. Here is a breakdown of the information Oceana Group presented to its investors.

Oceana Group is a prominent player in the fishing and food processing industry, known for its operations in South Africa and the United States, specializing in fishmeal, fish oil, and canned food products.

The company’s latest earnings report highlights a solid performance for the year ended 30 September 2024, with headline earnings per share up by 13.5%. The growth was mainly driven by record earnings from its US operations, margin improvements at Lucky Star foods, and a significant recovery in its Hake business.

Key financial metrics reveal a slight increase in revenue to R10.1 billion, driven by strong fish oil sales prices and improved sales volumes for hake and squid. Operating profit rose by 9.5% to R1.6 billion, supported by stronger margins and effective cost management. However, the group’s performance was partially offset by challenges in African fishmeal and fish oil operations due to lower volumes and disruptions in horse mackerel catch rates.

Oceana’s management remains optimistic about future prospects, focusing on leveraging recent investments to enhance operational efficiencies and product quality. The group anticipates benefiting from improved consumer spending in South Africa, supporting its growth strategy in the canned food segment, while also capitalizing on the resilience of the Gulf Menhaden resource to boost US fish catch volumes.