CAPE TOWN - African Equity Empowerment Investment's subsidiary, Premier Fishing and Brands Limited has today released their audited financial results for the year ended August 31, 2017. The distinguished food and fishing group revealed new acquisitions as well as overall company growth.
The vertically integrated fishing group has ticked all the right boxes during their 2017 financial year. A meagre 8 months after listing on the JSE, the Premier Foods announced that its year on year profit after tax increased by 31% from R52 million to R68 million.
"I am pleased at the results for this financial year and I wish to congratulate the Premier team on the efficiency as well as maintaining their focus on growth, development and sustainability. The growth plans for the fishing Group is taking place in earnest as expected and we look forward to the output and growth that this will generate in the future", said Group CEO of majority shareholder, African Equity Empowerment Investments Limited (AEEI) and Deputy Chairman of Premier, Khalid Abdulla.
March 2, 2017 marks the date when Premier listed on the JSE. The JSE-listed company then raised capital on the listing worth R526.5m cash. Subsequently, the company's revenue increased to R411 million. Gross profit margins stand at 44% while operating profit margins lies on 16%.
Premier proudly announced their consistent increase in third contracted quota fish with normalised EPS and HEPS increasing by 31% and 33% respectively.
"Since our successful listing during the year, the Group remained focused while operating during tough trading conditions. Despite this, I am delighted at the positive results and look forward to growing the business further, increasing the business sustainably as well as increasing shareholder value", reflected chief executive officer of Premier, Samir Saban.
Notably, the vertically integrated fishing company is the largest Black-owned and managed fishing group in South Africa.
The group also controls 60% of the South African South Coast Rock Lobster market which is exported to the USA.
Strategy and growth
The food and fish brand plans to increase their marine footprint by expanding heir abalone farm over the following two years.
Expansion plans will see the farm increasing their abalone acquisition by 320 tons.
Premier purchased a majority stake between (50-54%) in the largest squid player in the South African market, Talhado Fishing Enterprises.
The acquisition was at R100m for 50.1%. The price earnings is 4 to 6 times.
Notably, the Port Elizabeth operated fishing company currently has 18 vessels in operation with a total of 400 employees.
Premier Foods trades at 15 cents per share with a dividend yield of 3.3% return.
- BUSINESS REPORT ONLINE