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.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.