JSE-listed Sea Harvest lifted earnings before interest and tax (EBIT) by 2% to R536 million in the six months ended June 30, after raising prices to offset cost pressures and lower sales volumes.
The company said Tuesday that a weaker pelagic fishing season, a ban on fish trawling in Australia’s Pilbara region and a stronger rand against the US dollar weighed on performance.
Group revenue fell 6% to R3.3 billion, as double-digit price increases across the business were offset by lower volumes in the Pelagic and Australian divisions, as well as a 3% stronger rand.
Profit after tax from continuing operations rose 10% to R309 million, while headline earnings increased 13% to R320m compared with the comparable period last year.
Sea Harvest declared a maiden interim cash dividend of 24 cents per share. Its shares rose 3.57% to R8.70 in afternoon trading on the JSE after the results were released.
Net finance costs fell 18% to R109m, helped by lower average interest rates and reduced debt after proceeds from the Ladismith disposal in May 2026 were received.
“Disciplined cost control and efficiencies, complemented by foreign exchange and fuel hedge gains, contributed to EBIT increasing. Sea Harvest Pelagic experienced one of the weakest industrial fishing seasons on record, resulting in lower fishmeal and fish-oil sales volumes,” the company said.
Sea Harvest said it was unable to benefit fully from higher fishmeal and fish-oil prices, as persistent El Niño conditions curtailed global production.
Strong local pilchard catches, improved canned-fish margins and disciplined cost control partly offset the effect of lower industrial-fish volumes. The aquaculture business also significantly narrowed its loss before interest and tax, helped by product and market diversification that supported higher prices.
This followed cost-reduction initiatives introduced since 2024.
Sea Harvest’s Australian division was affected by the delayed start to the prawn-fishing seasons in Shark Bay and Exmouth.
Despite the delay, prawn-catch volumes increased by 20% compared with the prior period, supported by a favourable species and size mix.
Tropical Cyclone Narelle caused further disruption in February, damaging the fleet and the company’s land-based infrastructure in Exmouth. One vessel was written off.
“The delayed start to the prawn-fishing seasons and lower external engineering activity resulted in segment revenue for the six months to 30 June 2026 decreasing by 30% to R317m, with the decrease tempered by firm price increases,” Sea Harvest said.
The company implemented a second phase of cost reductions in the first half of the year to mitigate pressure on the Australian business. The segment reported a loss before interest and tax of R25m.
Cost of sales declined, but gross profit still fell 8% to R1.05bn.
Additional operating income of R133m included R92m in net foreign-exchange and fuel-hedge gains, as well as R28m in insurance income. Fair-value gains of R23m were mainly related to firmer pricing and an improved size mix in the aquaculture business.
THE NATIONAL