Oceana sinks more than 3% after warning of decline
The group has suffered a decrease in canned fish sales blamed on ‘timing of buy-in effects ahead of price increases’
Fishing group Oceana’s share price fell 3.3% to R98.86 on Friday after it warned shareholders it expected to report an up to 18% drop in interim earnings.
Oceana said its results for the six months to end-March scheduled for release on May 18 were expected to show headline earnings per share (HEPS) fell between 15% and 18% from the matching period’s 230.8c.
Betting the wrong way on the rand accounted for 14% of the drop in HEPS, but the group also suffered from a fall in canned fish sales blamed on "timing of buy-in effects ahead of price increases".
Another division, Commercial Cold Storage Logistics, experienced a drop in Gauteng business.
"The expected decrease is attributable primarily to losses on foreign-exchange contracts held to cover the import of frozen fish. During the period, the estimated aggregate foreign-exchange loss is R44.7m compared to an aggregate foreign-exchange gain of R69.9m in the comparative period," Oceana said in the trading statement.