Wrap Text
Unaudited interim results for the six months ended 30 June 2024
Sea Harvest Group Limited
Incorporated in the Republic of South Africa
Reg no: 2008/001066/06
JSE share code: SHG
ISIN: ZAE000240198
"Sea Harvest" or "the Company" or "the Group"
SEA HARVEST UNAUDITED INTERIM RESULTS
for the six months ended 30 June 2024
1. KEY PERFORMANCE INDICATORS
UNAUDITED UNAUDITED
SIX MONTHS SIX MONTHS
CHANGE ENDED ENDED
KEY PERFORMANCE INDICATORS % 30 JUNE 2024 30 JUNE 2023
Revenue (R'000) 3 3 302 632 3 202 639
International revenue mix (%) 53 45
Gross profit (R'000) 22 943 987 776 788
Gross profit margin (%) 29 24
Operating profit (R'000) 23 310 971 251 992
Operating profit margin (%) 9 8
Earnings before interest and tax (EBIT) (R'000) 6 373 395 352 109
EBIT margin (%) 11 11
Profit after taxation (R'000) -7 184 758 199 732
Profit after taxation attributable to shareholders
of Sea Harvest Group -17 176 269 212 529
Headline earnings (R'000) -32 144 140 212 716
Weighted average number of shares ('000) 5 290 913 276 074
Basic earnings per share (EPS) (cents) -21 61 77
Basic headline earnings per share (HEPS) (cents) -36 50 77
Net asset value (NAV) per share (cents) 15 1 354 1 175
ZAR: Euro average exchange rate 2 20.23 19.88
ZAR: AUD average exchange rate 1 12.32 12.18
ZAR: USD average exchange rate 3 18.72 18.21
Closing share price (cents) -20 809 1 010
2. SHORT-FORM ANNOUNCEMENT
The Board, management and staff extend their deepest condolences to the families and loved ones of the 11 crewmen
lost at sea, and the nine crew that were rescued, in the tragic sinking of the MFV Lepanto on 17 May 2024.
In a challenging environment, the Sea Harvest Group delivered EBIT for the six months to 30 June 2024 of R373 million,
6% ahead of 2023 while maintaining the EBIT margin at 11%, and HEPS of 50 cents. The Group's performance benefited from
significantly improved pricing and strong demand in the South African Fishing Group. Performance, however, was constrained
by continued low catches in the South African Fishing Group, deteriorating market conditions in the Aquaculture segment,
and higher interest rates in both South Africa and Australia.
With effect from 14 May 2024, the Group successfully concluded the acquisition of 100% of Terrasan's pelagics business
(Sea Harvest Pelagic) and 63.07% of Terrasan's abalone business (Aqunion). The transaction diversifies Sea Harvest into
pelagic (anchovy and pilchard) fishing and rounds out the Group's exposure to all material wild-caught fisheries in
South Africa, while the abalone business doubles in size, thereby creating an aquaculture business of scale. Importantly,
the acquisition has increased the Group's hard currency earnings, created a stronger merged business, increased black
ownership in the fishing and abalone industries, and broadened Sea Harvest's shareholder base.
Group revenue increased by 3% to R3.3 billion (2023: R3.2 billion), benefiting from improved selling prices offset by
lower sales volumes of hake and dairy.
South African Fishing Group: Sea Harvest continued to be affected by challenging fishing conditions in its hake business,
resulting in 5% lower catch volumes; however, this was more than offset by improved pricing as a result of firm demand in
all export and local markets and channels. Sea Harvest Pelagic benefited from the increased local pilchard quota and firm
global fish meal and fish oil pricing, offset by the lower anchovy quota. Segment revenue increased by 27% to R1.99 billion
(2023: R1.57 billion), while operating profit increased by 26% to R299 million (2023: R238 million), at an operating profit
margin of 15% (2023: 15%).
Sea Harvest Aquaculture: Segment revenue increased by 64% to R102 million (2023: R62 million), benefiting from the inclusion
of Aqunion since acquisition. However, the segment was challenged by reduced demand and increased competition in key abalone
markets that have impacted sales volumes, prices and mix. After accounting for fair value adjustments, the segment delivered
EBIT of R27 million (2023: EBIT R79 million, including the R93 million gain on purchased loans), at an EBIT margin of 26%.
Cape Harvest Foods: Segment revenue decreased by 25% to R787 million (2023: R1.05 billion) as a result of the deconsolidation
of BM Foods Manufacturers from the second half of 2023. On a like-for-like basis, revenue decreased by 2% to R787 million
(2023: R803 million) with the benefit of increased milk flow offset by a tough consumer environment driving lower sales volumes. Benefiting from good cost control, segment operating profit increased by 39% to R40 million (2023: R29 million), at an operating
profit margin of 5% (2023: 3%).
Sea Harvest Australia: Revenue decreased by 19% to R424 million (2023: R524 million) mainly driven by the later start to the
prawn fishing seasons in Shark Bay and Exmouth. As a result of clearing low margin prior season stock and with higher margin
sales being skewed more to H2 2024, the segment recorded an operating loss of R15 million (2023: R2 million operating profit)
for the six months to 30 June 2024.
Group EBIT increased by 6% to R373 million (2023: R352 million, including the R93 million gain on purchased loans) with the
Group EBIT margin constant at 11%.
Net finance costs increased to R128 million (2023: R104 million) as a result of higher interest rates and higher levels of
debt, including the acquisition debt, during the period.
Profit after tax attributable to shareholders of Sea Harvest decreased by 17% to R176 million (2023: R213 million) and
headline earnings decreased by 32% to R144 million (2023: R213 million).
Basic EPS decreased by 21% to 61 cents (2023: 77 cents) and basic HEPS decreased by 36% to 50 cents (2023: 77 cents). The
Group's results for the six-month period ended 30 June 2023 included a once-off gain on purchased loans of R93 million, which
contributed 34 cents to EPS and HEPS.
The Board wishes to thank management and employees for their loyalty, dedication, care, and professionalism in contributing
to the success of the Group.
The directors of the Group take full responsibility for the preparation of this announcement. This announcement has not been
audited by the Group's external auditors.
This announcement is a summary of the information contained in the full announcement and does not contain full or complete
details. Any investment decisions by investors or shareholders should be based on consideration of the full announcement,
as a whole.
The full announcement can be found at: https://senspdf.jse.co.za/documents/2024/jse/isse/shge/SHGHY2024.pdf
Copies of the full announcement are also available for viewing on the Group's website at: www.seaharvestgroup.co.za or may
be requested in person, at the Group's registered office or the office of the sponsor, at no charge, during office hours.
3. CASH DIVIDEND DECLARATION
In accordance with the Group's dividend policy, no interim dividend is declared or proposed for the six months ended 30 June 2024.
27 August 2024
Sponsor: The Standard Bank of South Africa Limited
Date: 27-08-2024 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
