30 October 2018, Cape Town – Premier Fishing and Brands Limited (Premier), listed on the Johannesburg Stock Exchange (JSE), today announced its financial results to shareholders
- Revenue increased by 20% from R411 million to R491 million
- Operating profit increased by 41% from R65 million to R92 million
- Profit after tax increased by 40% from R68 million to R95 million
- Cash generated from operations increased by 128% from R40 million to R91 million
- Group headline earnings increased by 19% from R69 million to R82 million
- The acquisition of an effective 50.31% shareholding in Talhado Fishing Enterprises Proprietary Limited (Talhado”) concluded during the year.
- Dividends to shareholders increased by 67% to 25 cents per share (2017: 15 cents per share)
Premier is a diversified vertically integrated fishing group specialising in harvesting, processing and marketing, sales and distribution of fish and fish-related products. Premier is one of the largest black owned and managed fishing businesses in South Africa and the most transformed in terms of its management and employees.
Group revenue increased by 20% from R411 million to R491 million compared to the prior period mainly as a result of increased sales volumes in the lobster and squid segments.
Group operating profit increased by 41% from R65 million to R92 million largely due to efficiencies achieved across all segments, while the Group’s profit after tax increased by 40% from R68 million to R95 million as compared to the prior year.
The Group delivered a net profit of R95 million for the year ended 31 August 2018, an increase of 40% compared to the prior year net profit of R68 million.
Cash generated from operations increased by 128% from R40 million to R91 million compared to last year, due to the strong operational performance in the current period.
Premier delivered on its promise by concluding the acquisition of 50.31% of Talhado during the 2018 financial year. Talhado is the largest squid company in the country and the deal is said to complement Premier’s diversification strategy and extend its product basket. Further benefits from this transaction are expected to be realised over the next few years including synergies to enhance shareholder value.
The Group experienced increased landings due to good catch rates for the lobster division as well as bigger size mix for south coast rock lobster (SCRL). The bigger size mix resulted in the Group achieving an increase in US dollar pricing for SCRL as compared to the prior period.
In general, the increased landings also resulted in increased sales volumes for the Company as compared to the prior period. The good catch rates, increased market prices and volumes resulted in the division maintaining its margin despite the strengthening of the Rand against the dollar in the first half of the financial year.
Reflecting on last year, Samir Saban, CEO of Premier said, “I am delighted at the positive results and look forward to growing the business further, increasing business sustainability as well as increasing shareholder value. These financial year-end results were realised as an outcome of excellent performances across most of the Group’s operating divisions which exceeded Premier’s expectations, by increasing its overall catch volumes, achieving better pricing, efficient cost and vessel management.”
Premier also holds medium to long term fishing rights in west coast rock lobster, south coast rock lobster, small pelagics, hake deep sea trawl, hake long-line sword fish, tuna as well as squid. The group owns an abalone farm as well as one of the largest squid operations and invests in organic agriculture through the Seagro range of products.
Saban reiterates that the planned expansion of the abalone farm has already increased its capacity during the year under review from 120 tons to 160 tons. Premier expects to double its abalone spat production because of the expanded hatchery on the abalone farm.
During the year, the abalone farm already employed 60 new employees and a further 200 additional employment opportunities will be made available over the short to medium term. This is in line with the Group’s strategic growth plan to increase much needed jobs and shareholder value as well as meeting its global demand for our product. The expansion will also further provide additional direct benefits in the communities in terms of job creation.
Premier delivered on its promise by concluding the acquisition of 50.31% of the Talhado group during the 2018 financial year. Talhado is one of the largest squid businesses in the country and the deal is said to complement Premier’s diversification strategy and further extends its product basket.
Saban continues, “The group expects Talhado to contribute positively to the performance of Premier over the next few years, including synergies which will result in further efficiences.
Despite tough market trading conditions, the Group is delighted at the positive results and look forward to growing the business further increasing the Group’s sustainability as well as growing shareholder value while building communities.
The catch rates for pilchards were lower than that of the prior year, industry wide, resulting in lower landings and sales volumes of pilchards in the current year. Industrial fish catch rates were the same as those experienced in the prior year. The lower landings and sales volumes for Pilchards resulted in lower revenues and operating profits for the division in the current year.
This year was also a period of consolidation for the Group, said Saban, as he explained that the fishing industry was severely impacted by the inclement weather and the unstable global economic conditions.
The successful platform of Premier and the excellent performance over the past few years has placed the Group in a strong financial position to aggressively pursue acquisitions as well as improve its further organic growth strategies.
Khalid Abdulla, Group CEO of African Equity Empowerment Investments Limited (AEEI) and Deputy Chairman of Premier commented, “I am pleased with the results for this financial year and I wish to congratulate the Premier team on their hard work and efforts and especially their focus on growth plans on a sustainable basis. The growth plans for the Premier Group are taking place as expected, and we are excited about the next growth phase of the company”.
Abdulla advised; “The Board of directors are pleased to announce a final gross dividend of 25 cents per share for the year ended 31 August 2018, an increase of 67% as compared to 2017 (15 cents) after the reporting period but before the financial statements were authorised for issue.
To arrange for an interview with Mr Samir Saban, CEO of Premier Fishing and Brands Limited, contact:
Communications and Marketing manager
Tel: 021 427 1400
Cell: 082 801 3919