Chamwe Kaira
Oceana Group says its horse mackerel business delivered improved performance in the five months ended 22 February, despite lower catch rates in Namibia and a stronger rand.
The company said the gains were driven by lower fuel costs and higher US dollar sales prices.
This was supported by a better product mix and strong market demand.
“Additionally, improved results from the horse mackerel businesses in South Africa and Namibia enhanced the overall performance of the wild-caught seafood segment.”
The group expects to release its interim results for the six months ending 31 March 2026 on or about 21 May 2026.
Performance in the wild-caught seafood and Lucky Star foods segments helped offset weaker results from fishmeal and fish oil. The fishmeal and fish oil businesses were affected by reduced industrial fish landings in South Africa and lower global fish oil prices.
Sales volumes in this segment increased by 7.7% compared to the prior period. However, prices for fishmeal and fish oil were lower, with average fish oil prices about 45% down year-on-year.
“Additionally, the financial results on translation were affected by a stronger average rand exchange rate during the reporting period.”
Fishing and production were limited to one month due to the closed season that started on 1 November 2025. The next season is expected to begin in mid-April 2026.
The squid industry also faced low catch rates, with volumes down 40%.
“The limited supply from South Africa has sustained firm European market prices. The wild-caught seafood segment secured hedges in November 2025 covering 70% of forecast fuel requirements to the financial year-end, excluding the Desert Diamond due to its held-for-sale status,” the group said.
The hake business recorded lower performance due to an 8% drop in catch volumes and the impact of a stronger rand on export earnings.
Lucky Star foods recorded a 6.7% increase in sales volumes, driven by demand for canned fish. Non-fish products made up 9% of total sales, with canned meat showing growth.
Local canned fish production fell by 77% due to limited global supply of frozen fish, which raised processing costs. Even so, margins improved due to lower freight and inventory costs, the stronger rand, a better sales mix and higher volumes of locally caught pilchards.
Inventory levels ended 59% lower than the previous period due to reduced frozen fish supply.
“Securing sufficient fish supply to service favourable market demand levels remains a key focus,” the company said.
In South Africa, horse mackerel performance improved due to higher catch rates and lower fuel prices. This was partly offset by lower US dollar prices for larger fish and the impact of the stronger rand on export revenue.
