Oceana earnings forecast to rise by up to 56%

CHAMWE KAIRA

Oceana Group, which is listed on the Namibia Securities Exchange (NSX) expects headline earnings per share (HEPS) to increase by between 46% and 56% for the financial year ended 30 September 2026, driven by higher operating profit and lower interest costs.

In a trading statement, the seafood company said HEPS is expected to range between 825 cents and 880 cents, compared with 564.8 cents recorded in the previous financial year.

Earnings per share (EPS) are expected to increase by between 45% and 55%, reaching between 815 cents and 870 cents, up from 562.4 cents in the comparative period.

Oceana said the expected earnings growth was primarily attributable to improved operating profit and lower interest costs.

Operating profit benefited from stronger performances in its United States fishmeal and fish oil business and its wild-caught seafood segment, supported by higher volumes and improved pricing.

The Lucky Star foods business also made a solid contribution despite limited inventory.

These improvements more than offset weaker results from the group’s Africa fishmeal and fish oil segment.

Oceana said it was finalising its financial results for the year, which are expected to be released on or about 26 November 2026.

In August, Oceana said for the 11 months ended 31 August, group revenue was in line with the prior period and operating profit increased.

This was driven by improved performances from Lucky Star foods, fishmeal and fish oil (USA) and Wild caught seafood, partly offset by continued pressure in the fishmeal and fish oil (Africa) segment, where lower production and sales volumes resulted in a significant operating loss.

Lucky Star foods delivered mixed results for the period, with a strong first half followed by a subdued second half through to the end of August.

Shortages of frozen fish raw material constrained canned pilchard availability and slowed sales momentum.

Total sales volumes declined by 5%, driven by a 9% decrease in canned fish volumes, as limited inventory prevented the business from fully meeting demand.

Strong canned meat sales partly offset this decline.

Horse mackerel catch rates improved, particularly in South African waters, helping to absorb higher fuel costs, while total seadays remained stable.

Sales volumes increased by 8%, with firm market pricing amid supply shortages, particularly for smaller-sized fish, the primary profit driver.