Oceana full-year revenue surges 22.6%

Fish and food processing company Oceana Group has reported a substantial 28.9% increase in headline earnings for the fiscal year ending on September 30, 2023. In a recent interview with CNBC Africa, Neville Brink, the CEO of Oceana Group, shed light on the company's performance, operating environment, and future growth prospects. Oceana Group has a diversified business model, operating across 31 geographies worldwide. While Lucky Star remains their flagship brand in South Africa, the company has also made significant strides in the US pet food supply market, along with operations in Western Europe. Despite challenges like constrained consumer spending and rising interest rates, Oceana Group has managed to navigate the landscape effectively. Lucky Star, in particular, has seen a remarkable 9% volume growth, thanks to strategic pricing and consumer demand for value-driven products. In the US market, Oceana's fishing company has capitalized on the growing pet food and aquaculture industries by supplying fish oil and fish meal. This segment experienced substantial growth in both volumes and earnings, reflecting a positive market reception. The 'wild caught' segment, comprising seafood products like hake and horse mackerel, faced challenges related to vessel constraints but witnessed robust demand from West Africa and Western Europe. Looking ahead, Oceana Group remains focused on sustaining growth in key areas. The company plans to continue driving Lucky Star sales by keeping prices consumer-friendly and maintaining healthy stock levels. With a significant presence in the salmon farming sector, Oceana will leverage the continuous demand for fish oil to drive future sales. Additionally, the company anticipates improved catch rates in the 'wild caught' segment due to changing weather patterns, positioning them well to cater to the strong demand for healthy seafood in European and South African markets. Despite uncertainties related to currency fluctuations, particularly the Rand, Oceana Group is optimistic about another successful year ahead. When it comes to capital expenditures, Oceana Group is committed to significant investments over the next three years, with plans to allocate approximately 1.2 billion Rand towards enhancing their West Coast factories, fish meal and fish oil facilities, and cannery operations. The company's recent opening of a new corn meat factory on the West Coast signifies their confidence in the future of their investments. Neville Brink, CEO of Oceana Group, expressed positivity about the company's growth trajectory and investment outlook, underlining their strong commitment to strategic expansion and sustainable operations.