Sea Harvest Group Delivers Stable Interim Results During Tough Times

31 August 2020

CAPE TOWN: Sea Harvest Group is pleased to announce a stable set of interim results for the six months ended 30 June 2020 with a 7% increase in revenue to R2 billion and headline earnings of 61 cents per share, in line with the same period last year. This is despite the worst pandemic experienced in over a century. The Group’s results were driven by consistent performances from its South African fishing segment, the Cape Harvest Food Group segment (which includes Ladismith Cheese) and its Australian operations, which were, however, offset by continued challenges in the Aquaculture segment that was severely impacted by the effects of Covid-19.

According to Sea Harvest Group Chief Executive Officer, Felix Ratheb, while Sea Harvest continued operating as an “essential service” provider, the impact of the pandemic and the COVID-19 lockdowns in the markets in which the Group operates meant that it did so below normal capacity levels. “Like many companies around the world, we encountered significant challenges on both the market and the supply chain sides of our business during the period under review. Lockdowns affected demand in our core markets of China, Italy and Spain, as early as January. This trend continued throughout February and March and reached South Africa and Australia in April. We needed to adapt to market conditions globally by changing our product and market mix relatively quickly with a focus on retail, as out-of-home consumption declined to virtually zero worldwide. This clearly indicates the resilient and defensive nature of our business and the sectors in which we operate. Unfortunately, COVID-19 has had a devastating impact on our aquaculture business that supplies abalone to the foodservice industry in Asia, particularly Hong Kong, compounded by the grounding of almost all air travel during the various lockdowns,” says Ratheb.

“Despite the supply chain side of the business also having its fair share of challenges with increased absenteeism, lower levels of efficiency and productivity, which was compounded by logistical bottlenecks, we are incredibly proud to have balanced supply with demand,” he adds.

According to Ratheb, Sea Harvest began implementing COVID-19 protocols in early March and dedicated significant resources to ensure the safety of its staff and limit the spread of the virus at its operations. This included over 15,000 screenings across all its sites, erecting physical barriers to ensure adequate social distancing and initiating an extensive contact-tracing prevention strategy to curb the spread of the virus at its facilities across the Western Cape. To date, over R16m has been spent in the South African operations on COVID-19 initiatives with an ongoing cost of c.R4m per month allocated to fight the virus for the remainder of 2020. “Stringent measures were put in place to prevent the virus from entering our workplaces. However, as with all companies across South Africa, once there were outbreaks within our communities, this manifested itself at some of our sites. The measures put in place were, and still are, a necessary requirement to ensure our staff operates in a safe working environment, and government, particularly our regulator (Department of Environment, Forestry and Fisheries), has been incredibly helpful and supportive throughout this period,” explains Ratheb. Thus far, the company has had a 100% recovery rate and delivered more than 10,000 food relief packages to benefit its staff and the communities it serves.

The Group is adopting a cautious outlook for the remainder of 2020. “We cannot grow complacent when entering lower levels of lockdown and we will continue to prioritise the health and safety of our people. What we are seeing in Australia and Spain are second waves and new lockdowns. It has been a tough six months and I would like to thank all our staff and other stakeholders for their commitment throughout this most difficult of times,” concludes Ratheb.

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