Oceana Group (OCE) H1 2026 earnings summary

Executive summary

• Revenue declined 6% to R4.9 billion, mainly due to lower fishmeal and fish oil results, but strong performances from Lucky Star Foods and Wild Caught Seafood offset segment volatility.

• Operating profit decreased 1.6% to R665 million, while headline EPS rose 7.7% to 349.8c and profit after tax increased 5% to R422 million.

• Net debt was reduced significantly, strengthening the balance sheet and improving leverage ratios.

• Interim dividend maintained at 110c per share.

• Fishmeal & fish oil (Africa) experienced a sharp decline in production and profitability due to reduced industrial fish landings.

Financial highlights

• Lucky Star Foods revenue grew 4.4% to R2.7bn and operating profit rose over 40% to R324m, with margin up to 12.0%.

• Wild Caught Seafood revenue up 19.1% to R1.02bn, operating profit up from R74m to R204m, margin at 20%.

• Fishmeal & Fish Oil Africa posted a R139m loss due to poor landings; USA segment profit down 26.7% to R276m.

• Gross profit margin improved to 28.1% (from 27.8%) on better sales mix and lower procurement costs.

• Net debt reduced from R3.5bn to R1.7bn; net debt/EBITDA improved to 1.1x.

Outlook and guidance

• Securing frozen fish supply and managing input cost pressures are key priorities for Lucky Star Foods.

• Wild Caught Seafood to leverage sustained demand and firm pricing, with new dual-purpose vessel enhancing fleet flexibility.

• Fishmeal & oil prices expected to rise due to global supply shortages and El Niño risk; improved anchovy biomass may support future recovery.

• Higher working capital and inventory costs, and increased short-term borrowings anticipated in H2.

• Focus remains on cost control, prudent capital expenditure, and further debt reduction.