Sea Harvest’s listing boosts earnings

Sea Harvest, the fishing enterprise controlled by Brimstone, has reported a significant increase in profit after tax to 276 million rand in its interim results. The company attributes this success to the 1.2 billion rand raised in its listing back in April 2017, which has contributed to boosting profits. Additionally, interest expenses have decreased by almost half to 39 million rand. Felix Ratheb, the Chief Executive Officer at Sea Harvest, joined CNBC Africa to delve into the details behind these impressive financial figures. Ratheb highlighted that one of the main drivers of Sea Harvest's strong performance is the global demand for its products. The company operates in a fishery that specifically targets high-value species, which are in demand in southern Europe and Australia. Moreover, sustainable fishing practices have helped Sea Harvest maintain a competitive edge in the market. Price increases, coupled with a rise in the Consumer Price Index by 4.5%, have positively impacted the company's top-line growth. Ratheb also emphasized the importance of effective resource management by the government, particularly in forestry and fisheries, to ensure sustainable harvesting of fish. In addition to strong top-line growth, Sea Harvest has focused on improving operational efficiencies to enhance its net income. Ratheb pointed out that the company has seen margin enhancements, with the gross margin increasing from 32 to 34%. Sea Harvest plans to continue this trend by investing in new vessels and factory upgrades. Ratheb acknowledged the importance of adapting to market dynamics, especially given the current volatility in exchange rates. Sea Harvest is eyeing potential acquisitions both in South Africa and Australia to further expand its business. Locally, the company is looking to acquire companies like Viking Fishing and Viking Aquaculture. In Australia, Sea Harvest has already made an acquisition in the Spanish mackerel fishery. With approximately 383 million in cash reserves and an ungeared balance sheet, Sea Harvest is well-equipped to pursue strategic acquisitions. Ratheb emphasized the company's strong shareholder support and access to additional capital from the markets and banks. Looking ahead, Sea Harvest remains focused on capitalizing on the favorable market conditions and global demand for its products. The company's commitment to sustainability and operational excellence has positioned it as a key player in the fishing industry.