Sea Harvest Group Limited has unveiled its financial results for the year ending December 31, 2023, demonstrating remarkable resilience despite facing numerous obstacles. Let’s delve into the noteworthy highlights of the company’s performance.
Financial Highlights
Despite encountering various challenges, Sea Harvest managed to achieve a 6% increase in revenue, reaching a substantial R6.2 billion for the fiscal year 2023. The gross profit witnessed a notable surge of 13%, soaring to R1.5 billion. However, the company experienced a setback in operating profit, recording -R2.5 billion compared to the previous year’s R471.7 million. Nonetheless, earnings before interest and tax (EBIT) showed promise, marking a 15% growth to R576.9 million.
| Financial Metrics | 2023 (R’000) | 2022 (R’000) |
|---|---|---|
| Revenue | 6,204,776 | 5,875,295 |
| Gross Profit | 1,510,409 | 1,337,942 |
| Operating Profit | -2,462,417 | 471,743 |
| Earnings Before Interest & Tax | 576,904 | 500,089 |
Segmental Performance
Sea Harvest displayed robust performance across its operational segments. The South African Fishing Division witnessed a commendable 10% increase in revenue, reaching R3.03 billion, with its operating profit climbing by 12% to R391 million.
Similarly, the Aquaculture Division experienced a notable revenue surge of 15%, totaling R136 million, with the segment managing to curtail its operating loss by 39% to R24 million.
| Segment | Revenue (R’000) | Operating Profit (R’000) |
|---|---|---|
| South African Fishing | 3,030,000 | 391,000 |
| Aquaculture | 136,000 | -24,000 |
Challenges and Outlook
Despite encountering hurdles such as adverse fishing conditions, inflationary pressures on costs, and disruptions like load shedding, Sea Harvest remains optimistic about the future. The addition of a new freezer trawler in the South African Fishing segment is expected to bolster production, while the Aquaculture segment focuses on operational enhancements and larger-sized abalone.
Strategic Acquisition
Sea Harvest made strategic strides by entering agreements to acquire Terrasan’s pelagic fish business and a significant stake in its abalone business for R965 million. This move diversifies Sea Harvest’s portfolio, tapping into new market segments and fortifying its position in the industry.
Dividend Declaration
Amidst its financial triumphs, Sea Harvest declared a final cash dividend of 40 cents per share for the fiscal year ending December 31, 2023. Shareholders can anticipate the dividend payment on April 8, 2024, provided they are recorded as shareholders on April 5, 2024.
Conclusion
Despite facing a myriad of challenges, Sea Harvest Group Limited emerges as a resilient force in South Africa’s fishing industry. With strategic acquisitions, operational enhancements, and an optimistic outlook, the company sets sail for continued growth and success in the years to come.
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