The Sea Harvest Group has proved resilient despite the challenges of the Covid-19 pandemic, growing revenue in 2020 by 10% to R4.4bn and headline earnings by 3% to R421m.
Despite supply chain disruptions, higher selling and distribution costs, a shift in market mix and R39 million in Covid-19 related costs, the group increased operating profit 5% to R629 million.
According to the group’s chief executive, Felix Ratheb, this strong performance was driven by fishing operations in South Africa and Australia. “Our fishing business is very well diversified in terms of markets, supplying a variety of products to 36 countries across the globe,” he said. “What we managed to do very effectively is divert products to retail markets where demand was firm.”
However, loss of markets in the Far East and suspended air freight from South Africa owing to coronavirus lockdowns have resulted in significant losses in the company’s aquaculture segment. On a more positive note, the hake fishery has been recertified by the Marine Stewardship Council until 2026.
Mr Ratheb credits state intervention in helping businesses weather the Covid storm, citing the government’s decision to deem fishing operations an essential service as crucial to its resilience. “Not a single job was shed in the industry due to the pandemic,” he said.
The group retained its Level 1 broad-based black economic empowerment contributor status and spent R1.1 billion with 222 majority black-owned suppliers, while R463 million was spent on 642 small, medium and micro enterprises.
Earnings per share increased 3% to 154.3 cents per share and the group has declared a cash dividend of 45 cents per ordinary share, in line with the previous year.
