Sea Harvest says profits will jump after new acquisitions
The fishing group expects headline earnings to rise after a strong performance from its fishing operation and new acquisitions
Fishing group Sea Harvest says its full-year earnings to end-December could rise by more than a half after strong performance by its core fishing operations and new acquisitions.
Headline earnings are expected to rise by 42%-52% from R278m previously, with the company reporting a “pleasing result” from Ladismith Cheese, which it acquired in January 2019.
The group said at the time that it was seeking to diversify earnings and benefit from growing consumers in natural-fat products.
Basic headline earnings per share (HEPS) to end-December are expected to rise by 28%-37% from 111.5c previously, with the lower HEPS growth reflecting the issuance of new shares to fund its acquisitions.
HEPS is the main profit measure used in SA, and strips out one-off items.
The R527m acquisition of Ladismith followed on the heels of Sea Harvest’s R885m acquisition of the Viking fishing Group and 50% of Viking Aquaculture, which was completed in July 2018.
Sea Harvest listed on the JSE in April 2017 and has said it is seeking further expansion.
At 10.42am Sea Harvest’s share price was up 2.76% to R14.90, having risen 14.62% over the past 12 months.