Oceana, in an updated trading statement for the year ended September 30, 2023, said yesterday that the fishing group was finalising its annual results and expected its headlines earnings to lift by 34% due to increased sales volumes of Lucky Star canned pilchards and firm global pricing for fish oil.
Despite the strong trading update, the share price was at 1.07% lower at R72 in midday trade, the counter having risen 14.99% in the year to date.
Oceana expected its annuals to be released on Monday, November 27.
On August 17, the group had advised that basic annual earnings per share (Eps) would be more than 20% higher than the 603c per share reported in the previous year.
The group was “now satisfied that a reasonable degree of certainty exists” that basic annual headline earnings per share (Heps) of the group would also be more than 20% higher than the 606.2c per share reported in the previous year.
Shareholders were now advised in an updated forecast that Eps was expected to be between 1 061.2c and 1 121.5c, representing an increase of between 76% and 86% compared to Eps of 603c reported in the previous year.
Heps were likely to be between 751.6c and 812.3c, representing an increase of between 24% and 34% compared to Heps of 606.2c reported in the previous year.
“The group's strong financial performance for the year has been driven primarily by increased sales volumes of Lucky Star canned pilchards and firm global pricing for fish oil.
“Higher opening inventory levels of canned fish and fishmeal and oil together with strong demand and price improvements for our products also contributed positively to the Group's performance,” it said.
Shareholders were reminded of the profit realised on disposal of the Group’s interest in Commercial Cold Storage, which resulted in an Eps increase of 314.4c per share and was excluded for headline earnings purposes.
BUSINESS REPORT