Johannesburg - South Africa’s largest fishing company, Oceana said it wanted to consolidate in the short term but would continue to look out for opportunities to grow its business and diversify further in the long run.
The group acquired 100 percent of fishmeal and oil specialist Daybrook Fisheries for R4.6 billion last year and the Foodcorp fishing unit for R400 million in 2013.
Chief executive Francois Kuttel said last year that the group wanted to be a major player in the fishing world. By acquiring Daybrook the group has made its intentions clear.
The group, which generates 75 percent of its revenue in South Africa, will see the revenue generated inside the country dropping to 41 percent. The Cape Town-headquartered company is set to move in unison with its long diversifying strategy. The board of directors retained their positions during the annual general meeting held at the end of last week.
Chief financial officer Imraan Soomra said: “Acquiring 100 percent of the processing operations of US-based Daybrook fisheries and 25 percent of Westbank, its related marine operations, is in line with our long-term strategy. We believe our long-term strategic business development model will have a significant impact on long-term growth opportunities, given that it represents 40 percent in value of Oceana’s market capitalisation.”
Oceana has a market capitalisation of R15.59bn, and is listed on both the Johannesburg and Namibian stock exchanges. The group produces Lucky Star canned fish, horse mackerel, hake, lobster, squid and French fries. The group caters for lower and high end consumers.
“Our primary exposure to the South African consumer is through our Lucky Star canned fish products… We have taken steps to mitigate against our own cost pressures to continue to service the Lucky Star consumers with affordable and wholesome products,” he added.
Oceana’s share price was unchanged on Friday, closing at R115 on the JSE.
BUSINESS REPORT