Advertise with

Sea Harvest has acquired Ladismith Cheese.
Sea Harvest has acquired Ladismith Cheese.

Sea Harvest announces interim results and the acquisition of Ladismith Cheese


Issued by Reputation Matters on behalf of Sea Harvest - Aug 29th 2018, 11:14

Sea Harvest Group reported revenue of R1.004bn, down 5% from the corresponding period in 2017 impacted by the reduction in the total allowable catch (TAC) in South Africa, and the delayed start to the prawn fishing season in Australia.

Gross profit increased by 4% to R367.7m for the period and the gross profit margin improved by 3% to 36.6%, benefitting from further efficiency gains across both the fleet and factory operations and an increase in higher margin export sales volumes. Headline earnings of R111.3m improved slightly by 1% over 2017, impacted by costs incurred for the Viking transaction and the performance of Mareterram, due to the late start of the prawn season.

Sea Harvest Group generated R195 million in cash from operations before changes in working capital and the utilisation of R130m in investing activities during the period under review, ending the period with R321m of cash on hand.

Sea Harvest Group CEO, Felix Ratheb, says the group’s key focus for the 6-month period in review was continuing to drive its strategic deliverables of organic and acquisitive growth. “The Harvest Mzansi joined our fleet in April 2018, and our factory optimisation project concludes in Q4 this year. These initiatives should assist us in delivering margin enhancement."

"In support of our acquisitive goals, the Group’s strategy is to invest in fishing and complementary sectors of the South African food and agricultural industry which exhibit strong fundamentals, growth and where the Group is able to leverage its core competencies and strengths. The recent completion of the Viking Fishing and Aquaculture transaction and now the acquisition of Ladismith Cheese is in line with our strategic objectives, with both these transactions meeting our investment criteria.”

Ratheb went on to add, “Ladismith Cheese exhibits strong fundamentals. It is a profitable, branded fast moving consumer goods food manufacturer of significant scale in the food and agricultural sector. It has a long track record, strong national brand and a proven management team. In our opinion, the dairy sector is expected to experience continued growing demand for cheese and butter in response to consumer dietary changes towards natural fat products.”

The Ladismith acquisition will be funded from available cash and/or facilities and/or a potential vendor consideration placing and is subject to such other terms and conditions as are considered typical for a transaction of this nature.

Fred Robertson, Chairperson of the Group’s majority shareholder, Brimstone, states that, “The acquisition of Ladismith Cheese will provide Sea Harvest, through its wholly-owned subsidiary company, Cape Harvest, with an ideal platform from which to build on in the dairy sector through the development and acquisition of additional dairy and allied beverage products.”

Ratheb states that the group retains a positive outlook as global demand for high-value, sustainable certified wild-caught seafood remains high and this will continue to drive higher margin export growth. “We expect to see significant benefit from the complementary nature of the Viking fishing business and our diversification into aquaculture and complementary sectors of the South African food and agricultural sectors,” he concluded.

Click here for more information on Sea Harvest 

Related Activity

Bashew’s salutes two decades of laughter with Joe Barber15
Bashew’s salutes two decades of laughter with Joe Barber
Bashew’s, the Cape’s iconic and cherished soft drink dating back to 1899, pays tribute to one of South Africa’s most popular comedy shows, Joe Barber.
KWV Brandy named global Brandy Producer of the Year at ISC12
KWV Brandy named global Brandy Producer of the Year at ISC
For an incredible fourth year running, KWV has been awarded the Producer of the Year Trophy in the Brandy and Cognac category at the International Spirit Challenge (ISC).
Vital Health Foods launches premium range as wellness industry booms10
Vital Health Foods launches premium range as wellness industry booms
Bolstered by the overall category growth, Vital Health Foods – Africa’s leading manufacturer of complementary medicines and health supplements (IRI Aztec 2018) – has launched their new premium scientifically-formulated Vital Health Science range; a suite of health products that have been expertly formulated with high quality raw materials obtained through a world-class sourcing process and subject to rigorous compliance testing in Vital Health Foods’ laboratory.
SASKO evokes childhood memories with Sandwich Stories campaign04
SASKO evokes childhood memories with Sandwich Stories campaign
The simple sandwich - it’s more than just two slices of bread, it’s the memory of the person who made it for you, the moment you shared and the traditions that are passed on from generation to generation.

Try these recipes

Spinach Wraps11
Spinach Wraps
These spinach wraps are a great healthy summer starter or lunchtime snack for the whole family to enjoy.
Chai & Orange Rice Pudding 11
Chai & Orange Rice Pudding
A warm winter pud.
Double Chocolate Mocha Brownies04
Double Chocolate Mocha Brownies
We didn’t think you could improve a chocolate brownie – ‘til we added more chocolate and a hit of Foreign Ground coffee.
Cauliflower Curry with Coconut Dust04
Cauliflower Curry with Coconut Dust
Meat-free curries are just as supreme!