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Cape Town, 17 May 2018 – JSE-listed Premier Fishing and Brands Limited (Premier), one of the largest black owned and managed fishing companies in South Africa, today announced sterling results for the interim period to 28 February 2018.
Highlights
- Gross profit increased by 7% from R71 million to R76 million
- Operating profit increased by 14% from R18 million to R20 million
- Profit after tax increased by 59% from R18 million to R29 million
- A gross dividend of 15 cents per share was paid to shareholders during Feb 2018
- Acquired 50.31% controlling interest in Talhado Fishing Group
Premier has once again delivered good results in tough conditions for the interim period 28 February 2018. Operating profit increased by 14% and profit after tax increased by 59%, from the prior period. This was mainly driven by the strong performance in the squid and lobster divisions for the period under review. Good catch rates across most of our divisions as well as cost efficiencies across all divisions also contributed.
Reflecting on the period under review, Samir Saban, chief executive officer of Premier said: “I am pleased with our interim results and the progress Premier has made against our strategy to date. Since listing the Group on the JSE last year, we faced tough trading and environmental conditions but, despite this, the company has achieved positive results.
We also look forward to the latter half of the financial year where the bulk of our performance is achieved due to the seasonal nature of our business.”
The Rand strengthened against the US dollar from an average of R13,86 in the prior comparative period, to an average of R12, 69 in the current period. The strengthening of the Rand impacted somewhat on Premier’s revenue, however this was offset by increased sales volumes in the squid and lobster divisions, as well as increased market prices on our products.
Revenue increased by 1% to R185 million from R183 million in the prior period and also had a positive effect on the growth margin, increasing it to R76 million from R71 million in the prior period.
The Group’s profit after tax increased by 59% from R18 million to R29 million in the prior period, mainly as a result of the strong operating performance of the squid and lobster divisions, as well as the interest earned on income generated from the cash raised on listing.
The squid industry experienced exceptional catch rates during the period under review. The landed volumes and sales volumes for squid doubled when compared to the prior period.
Premier has demonstrated that it has delivered on its growth strategy by completing its acquisition of Talhado Group (Talhado).
Yesterday (16 May 2018), Premier announced the approval of its first acquisition of controlling interest of 50.31% in Talhado which is one of the largest squid company’s in South Africa. The strategic acquisition of Talhado was made for its squid fishing rights, brand, processing facilities as well as to enhance the Group’s footprint in the squid sector.
Saban stated, “I am elated at the approval of the Talhado deal by the Competition Authorities and the Department of Agriculture, Forestry and Fisheries, since all the outstanding conditions precedent to the transactions were fulfilled. This acquisition will lead to further synergies among the existing operations and enhance value to all stakeholders of Premier”.
Premier listed on the JSE in March 2017, raising R527 million for acquisitions and organic growth.
The Group puts sustainable fishing at the core of its business ethos and it complies with all industry laws and regulations in South Africa and its fishing methods and standards are in line with global standards.
Khalid Abdulla, Group Chief Executive Officer of majority shareholder African Equity Empowerment Investments Limited (AEEI) and deputy Chairman of Premier added, “As the global appetite for fish grows, the need to protect overfishing and the replenishment of the marine population, aquaculture will remain a key element of Premier’s long-term strategy, complemented by further aligned acquisitions to diversify the company’s product offering.”
As a black-owned and managed fishing business, Premier is committed to implementing the principles of transformation and broad-based black economic empowerment. It continues to place this high on the agenda in order to promote nation building in South Africa.
Abdulla concludes, “I congratulate the Premier team on the growth, development and sustainability achieved during this period, despite the tougher trading conditions. The Group’s resultant strong financial position will enable it to aggressively pursue acquisitions as well as further it’s organic growth strategies. I am delighted with the growth path and value creation that Premier presents for all stakeholders.”
ENDS
For further information and to arrange interviews with Mr. Samir Saban, contact:
Feroza Petersen | Communications and Marketing Manager
Email: Feroza@aeei.co.za
Web: premierfishing.co.za
Tel: 021 427 1400
Mobile: 082 801 3919