Oceana Group (OCE) Trading update summary

Revenue and profit performance

• Revenue remained consistent with the prior period, while operating profit was slightly lower, as anticipated.

• Strong results from Lucky Star foods and Wild caught seafood offset weaker fishmeal and fish oil performance.

• Fishmeal and fish oil businesses were impacted by reduced industrial fish landings and lower global fish oil prices.

Lucky Star foods segment

• Sales volumes increased by 6.7%, driven by strong local demand for canned fish.

• Non-fish products accounted for 9% of total sales, with canned meat showing strong growth.

• Local canned fish production dropped 77% due to constrained global supply, raising processing costs.

• Operating margins improved due to lower freight, inventory costs, and a stronger Rand.

• Inventory levels ended 59% below the prior period, reflecting lower frozen fish supply.

Fishmeal and fish oil segments

• Africa operations saw an 80% reduction in production volumes due to lower landings and no anchovy TAC.

• Higher production costs and lower sales volumes led to a greater operating loss.

• Inventory levels closed 74% lower than the prior period.

• USA operations were limited to one month due to the closed season, with sales volumes up 7.7%.

• Average fish oil prices were about 45% lower year-on-year, and inventory levels rose 25%.