Sea Harvest CEO: Results show resilience in a difficult time

Sea Harvest, a leading seafood company, has recently released its annual results, showcasing a commendable 2% rise in basic headline earnings per share compared to the previous period. The CEO, Felix Roteve, joined CNBC Africa to discuss the company's performance in a challenging economic climate. Roteve highlighted the contrasting impacts on Sea Harvest's retail and food service markets during the COVID-19 pandemic. While retail markets thrived due to increased in-home consumption, food service markets experienced a slowdown, particularly affecting the Abalone business. The restrictions on trade and disruptions in the Far East further compounded the challenges faced by the aquaculture division. Roteve acknowledged the difficulties but emphasized the company's resilience and proactive measures to navigate the crisis. Sea Harvest's fishing business, which spans across 26 countries, proved to be a stronghold, benefiting from the shift in consumer behavior towards seafood consumption at home. The pivotal role played by government regulations in categorizing Sea Harvest as an essential service enabled the company to sustain its fishing and processing operations, ensuring the continuity of product supply. Roteve also delved into the macroeconomic landscape, addressing the rising freight and shipping costs attributed to the pandemic. He noted the surge in air freight costs, significantly impacting the abalone sector due to reduced out-of-home consumption. While challenges persist in the cost dynamics, Sea Harvest remains resilient and adaptable to market changes. Looking ahead, Roteve outlined the structural changes brought about by the pandemic, emphasizing the importance of cash conservation and business diversification. The company successfully reallocated resources to enhance working capital and debt management, positioning itself for future growth. Roteve underscored the flexibility in Sea Harvest's business model, enabling swift adjustments to meet evolving consumer trends. Despite the ongoing uncertainties, Roteve expressed confidence in the industry's rebound post-pandemic and highlighted potential opportunities for acquisitions and industry consolidation. With a strategic focus on maintaining a robust balance sheet, Sea Harvest aims to capitalize on emerging prospects in the food sector. The interview shed light on Sea Harvest's steadfast performance and strategic vision amidst the prevailing challenges, showcasing the company's resilience in a turbulent economic landscape.