Sea Harvest Deep Dive [Part 2]

Trading Update

Sea Harvest has released a trading statement ahead of the announcement of its financial results for the year ended 31 December 2022. 
 

The company reported that firm demand in both international and local markets resulted in revenue increasing in all segments, despite a 10% decrease in hake volumes due to quota losses from the Fishing Rights Allocation Process and a reduction in the Total Allowable Catch.

However, the company faced several challenges that impacted its performance, including a material increase in the fuel price, once-off acquisition costs related to the MG Kailis acquisition, higher interest rates, and load-shedding.

The Aquaculture segment continued to improve, halving its losses from the comparative period, while the Cape Harvest Foods and Australian segments delivered strong performances. Sea Harvest expects to report a decrease in earnings before interest and tax (EBIT) of between 24% and 27%, with basic earnings per share (EPS) and basic headline earnings per share (HEPS) expected to decrease by between 32% and 35% compared to the same period last year. The financial information on which this trading statement is based has not been reviewed and reported on by the Groups external auditors.