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Interim results for the six months ended 31 March 2026 and cash dividend declaration
OCEANA GROUP LIMITED
Incorporated in the Republic of South Africa
Registration number : 1939/001730/06
JSE/A2X share code : OCE
NSX share code : OCG
ISIN : ZAE000025284
("Oceana" or "the Company" or "the Group")
UNAUDITED CONDENSED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED
31 MARCH 2026 AND, CASH DIVIDEND DECLARATION
SALIENT FEATURES
March March
2026 2025 %
Rm Rm change
Revenue 4 877 5 186 (6.0)
Operating Profit 665 676 (1.6)
Profit after tax 422 402 5.0
Basic earnings per share (cents) 352.6 323.2 9.1
Basic headline earnings per share (cents) 349.8 324.9 7.7
The table above summarises the key financial highlights for the six months ended 31 March 2026
("the Period") and compares them to the corresponding six months ended 31 March 2025 ("the
Prior Period").
GROUP OVERVIEW
The Group delivered strong results in both the Lucky Star foods and Wild caught seafood
businesses which helped to offset the lower results from the Fishmeal and fish oil businesses,
which were affected by lower industrial fish catch volumes in South Africa ("SA") and weaker
global prices for fish oil and fishmeal.
Revenue declined by 6.0% to R4.9 billion (March 2025: R5.2 billion). Despite the overall decrease,
Lucky Star foods delivered 4.4% revenue growth, supported by sustained demand and a
favourable sales mix. The Wild caught seafood segment benefited from strong pricing and
improved catch rates, contributing positively to revenue growth. In contrast, revenue from the
Fishmeal and fish oil segments was negatively impacted by lower South African industrial fish
landings and weaker global market prices.
Gross profit margin improved to 28.1% (March 2025: 27.8%), primarily driven by strong
performance of both Lucky Star foods and the Wild caught seafood segment. Lucky Star foods
achieved higher margins due to lower inventory holding and fish procurement costs, a favourable
sales mix and higher volumes of locally caught pilchards, which mitigated lower local canning
production. Wild caught seafood margins improved due to higher volumes, stronger market
prices and lower fuel costs. These improvements were partly offset by weaker margins in the
Fishmeal and fish oil segments.
Operating profit decreased marginally by 1.6% to R665 million (March 2025: R676 million).
Overheads decreased by 6.1%, which includes a fuel hedging gain of R43 million (R33 million is
unrealised). When excluding the effect of fuel hedging and the net impact of the Desert
Diamond's suspended depreciation and class renewal costs, overheads decreased by 3.3% with
the Group's focus on cost containment measures. There was no other income recognised during
the current period (March 2025: included R28 million related to insurance proceeds from Wild
caught seafood claims).
Net interest expense decreased by 31.3% to R99 million (March 2025: R144 million). The R33
million reduction in South Africa was primarily due to materially lower working capital levels and
the positive impact of capital repayments. In the United States of America ("USA"), net interest
expense decreased by R12 million due to lower debt levels following capital repayments made in
both the current and prior periods, a favourable Rand exchange rate effect, and the transition to
a revolving credit facility in December 2025, which eliminated negative carry.
The effective tax rate increased to 25.4% (2025: 24.3%) due to the lower proportion of USA
earnings, which is taxed at a lower rate.
Profit after tax increased by 5.0% to R422 million (2025: R402 million).
The Group's headline earnings per share increased by 7.7%, primarily due to operating profit
that remained largely in line with the prior period, a reduction in net interest expense and a
lower profit share attributable to minority interests (reflecting lower earnings in subsidiaries with
external shareholders).
CASH FLOW AND FINANCIAL POSITION
Cash generated from operations increased significantly to R1?413 million (2025: R10 million). This
improvement was mainly due to a reduction in working capital requirements during the period,
largely resulting from lower volumes of fish procured by Lucky Star foods. Capital expenditure
decreased to R116 million (2025: R183 million) and included expenditure on scheduled
maintenance for the hake fleet, a deposit for the acquisition of a dual?purpose vessel and regular
maintenance activities at the Group's processing facilities.
The Group's net debt declined significantly to R1 733 million (2025: R3 498 million). This decrease
was driven by a reduction of R1 320 million in South Africa and R 445 million in the USA, reflecting
capital repayments made across both regions and lower working capital levels in South Africa.
The Group's net debt to EBITDA ratio accordingly improved to 1.1 times (2025: 2.2 times). The
Group complied with all lender covenant requirements relating to both its SA and USA debt
facilities during the period.
REVIEW OF OPERATIONS
Revenue and operating profit by segment for the period:
Rm Revenue Operating Profit
Unaudited Unaudited Unaudited Unaudited
six six six six
months months % months months %
ended 31 ended 31 Change ended 31 ended 31 Change
Segmental March March March March
results 2026 2025 2026 2025
Lucky Star foods 2 700 2 587 4.4 324 230 40.6
Fishmeal and
21 281 (92.5) (139) (5) >(100.0)
fish oil (Africa)
Fishmeal and
1 139 1 464 (22.2) 276 377 (26.7)
fish oil (USA)
Wild caught
1 017 854 19.1 204 74 >100
seafood
Total 4 877 5 186 (6.0) 665 676 (1.6)
LUCKY STAR FOODS
Lucky Star foods sold 5.1 million cartons, slightly higher than the prior period's record-setting first
half. Sales volumes for canned fish remained stable, while canned meat experienced a significant
increase attributed to strong demand. This was offset by an equivalent drop in canned vegetable
sales volumes following the strategic decision to streamline lower-margin products.
Local canning production volumes declined sharply to 812 000 cartons (March 2025: 2.9 million
cartons), due to limited global supply of frozen fish suitable for local canning. Local pilchard
landings increased to 9 750 tons (March 2025: 8 881 tons), partially offsetting the higher per-unit
production costs resulting from lower production volumes.
Despite reduced overall output, the operating margin improved to 12.0% (March 2025: 8.9%)
driven by reductions in freight and inventory holding costs, the favourable effect of a stronger
Rand on fish procurement costs, a beneficial sales mix and higher volumes of locally caught
pilchards. Furthermore, Oceana's associate income from a 44.9% share of Etosha Fisheries
increased to a profit of R9 million (March 2025: loss of R9 million), driven by higher production
activity resulting from a stronger pilchard resource in Namibia.
Inventory levels ended 60% lower than the prior period's elevated levels, mainly due to the
reduced availability of frozen fish. This decline had a positive effect on working capital investment
and inventory holding costs.
FISHMEAL AND FISH OIL ("FMO")
FMO (AFRICA)
Production volumes reduced by 68%, primarily due to decreased industrial fish landings to
18 353 tons (March 2025: 48 542 tons). Additionally, volume derived from pilchard trimmings at
Lucky Star foods' canneries were lower than in the prior period. The decline in industrial fish
landings was attributable to fewer red-eye herring catches and no initial anchovy total allowable
catch ("TAC") (March 2025: 35 000 tons).
As a result, sales volumes declined by 90%, and per-unit production costs increased due to fixed
costs not being fully absorbed, contributing to a substantially larger operating loss for the period.
Inventory levels closed 50% lower than the prior period, reflecting the decrease in production
output.
FMO (USA)
In line with industry practice, fishing and production operations were limited to a single month
within the period, due to the annual closed season starting on 1 November 2025. The new fishing
season resumed in mid-April 2026.
Fishmeal sales volumes were consistent with the prior period, reaching 21 508 tons (March 2025:
21 589 tons), while fish oil sales volumes declined by 7% to 13 559 tons (March 2025: 14 586
tons). The decrease in revenue and operating profit was primarily attributed to weaker US Dollar
pricing, with average fishmeal prices falling by 8% and fish oil prices decreasing by 14%. Fish oil
sales contracts secured during the second quarter achieved higher prices, driven by global
supply uncertainties, which helped reduce the gap between the current and prior period's
average prices. The financial results were further affected by a 6% appreciation in the average
Rand exchange rate during the reporting period, resulting in a negative impact on the translation
of foreign earnings, amounting to R18 million.
Inventory levels at period close were double those of the prior period, largely attributable to
higher fishmeal inventory.
WILD CAUGHT SEAFOOD
HAKE
The Hake operations delivered an improved performance for the period. Production volumes
increased by 8%, despite the planned dry docking of Beatrice Marine, the fleet's flagship vessel.
This increase was driven by a 5% improvement in seadays and a 2% increase in hake catch rates,
with the greater number of seadays highlighting the effectiveness of recent capital investments
aimed at enhancing fleet reliability.
Sales volumes increased by 10% to 6 133 tons (March 2025: 5 576 tons), supported by strong
demand and favourable pricing in Europe, largely attributed to lower supply of alternative white
fish species. Additionally, a fuel hedging gain of R18 million (R14 million unrealised) was
recognised, reflecting the decision to hedge 70% of forecast fuel requirements through to the
financial year end.
HORSE MACKEREL
In South Africa, the Desert Diamond vessel remains classified as an asset held for sale. The vessel
landed 5 417 tons (March 2025: Nil – as the vessel operated in Namibia), benefitting from
improved catch rates. This operational gain was offset by softer prices for larger sized fish
resulting from an oversupply in the market. The vessel also underwent its class renewal survey in
the second quarter. As it is held for sale, depreciation was suspended and the class renewal costs
were fully expensed, resulting in a net expense of R30 million for the period. Due to its held for
sale status, fuel hedging was not implemented.
In Namibia, landings decreased by 16% to 16 649 tons (March 2025: 19 746 tons), primarily due
to lower catch rates, as well as the fact that the prior period benefited from the Desert Diamond
vessel fishing in Namibian waters. Despite the reduced volumes, operating costs declined, driven
mainly by lower fuel prices and reduced quota usage fees. Consistent with the successful fuel
hedging results achieved in the hake business, a fuel hedging gain of N$25 million (N$19 million
unrealised) was recognised during the period. These gains, combined with a 19% increase in the
average Rand sales price, supported by an improved sales mix and strong market demand,
contributed to a significantly higher operating profit for the period.
Total horse mackerel sales volumes increased by 13% to 21 962 tons (March 2025: 19 431 tons).
SQUID AND LOBSTER
Challenging industry-wide fishing conditions persisted throughout the period, significantly
affecting the squid business and resulted in a 44% decline in catch volumes. Although average
European prices increased by 19%, this was insufficient to offset a 56% decrease in sales
volumes and negative impact of a stronger Rand. As a result, overall operating performance
deteriorated during the period.
Both lobster species benefited from higher TAC allocations, with the West Coast Rock Lobster
TAC rising by 58% and the South Coast Rock Lobster TAC increasing by 5%. However, these gains
were largely offset by softer market prices for both species, which limited the positive impact on
overall performance.
DIVIDEND
The Group declared an unchanged interim dividend of 110 cents (March 2025: 110 cents) per
share.
OUTLOOK
Securing an adequate supply of frozen fish to rebuild inventory levels remains a key priority for
Lucky Star foods in the second half of the year. With the lower inventory carried into the second
half, proactive management will be required to maintain consistent market supply until stocks
are sufficiently replenished. The stronger pilchard biomass outlook in both South Africa and
Namibia, reflected in the increased SA TAC to 51 800 tons, should help alleviate some of the
supply pressure.
US Dollar-denominated costs are expected to rise due to global shortages and increasing freight
expenses; however, the strength of the Rand relative to the prior year should help to offset some
of these pressures. Higher levels of frozen fish procurement will result in higher working capital
levels and inventory holding costs during the second half.
Lucky Star foods remains focused on driving volume growth by broadening its product range in
the wider food sector.
Global fishmeal and fish oil prices are experiencing upward pressure due to prevailing market
conditions. This trend is largely driven by the 36% reduction in the Peruvian anchovy first season
quota to 1.9 million tons (March 2025: 3.0 million tons). Compounding this impact, fishing
performance in Peru has been weak, with only 24% of quota landed to date, heightening supply
concerns and supporting higher prices.
Recent SA anchovy biomass research also indicates a higher biomass compared to last year,
signalling a favourable outlook for next season's recruitment. The 2026 anchovy TAC has been
maintained at a conservative level of 30 000 tons, consistent with the 2025 allocation, to ensure
sustainable management of the resource. Redeye catches up to end-April are 68% lower than the
prior year, making increased catch rates during the winter months essential for improved
profitability of the FMO (Africa) segment in the second half of the year.
The US Gulf menhaden fishing season started mid-April and will run for 28 weeks to the end of
October. By the end of week 4, early-season landings are ahead of the 5-year average for the same
period.
The Wild caught seafood segment is projected to maintain strong demand and firm pricing. Rising
fuel costs, particularly where hedging is not in place, together with increased freight expenses
and the strengthening of the Rand, are however expected to offset these positive effects.
Additionally, planned surveys for two Namibian horse mackerel vessels and one South African
hake vessel in the second half will reduce operational days at sea, which may further impact
segment performance.
A recently acquired dual-purpose vessel was delivered in May 2026. The vessel will undergo a
comprehensive refit to equip it to target both the hake and horse mackerel fisheries, further
supporting fleet versatility. Operations are scheduled to commence in January 2027, following
completion of these upgrades.
The Group anticipates that higher working capital levels in the second half of the year will result
in higher short-term borrowings and a corresponding increase in interest expense in South Africa.
Any forward-looking statements in this announcement have not been reviewed or reported on by
the Company's external auditors.
CHANGES TO THE BOARD AND COMMITTEES
The following changes took place during the interim period:
• Mr Aboubakar (Bakar) Jakoet was appointed as Lead Independent Director of the
Company as well as the Chairperson of the Corporate Governance and Nominations
Committee with effect from 1 January 2026.
• Mr Peter de Beyer stepped down as the longstanding Lead Independent Director of the
Company as well as the Chairperson of the Corporate Governance and Nominations
Committee with effect from 31 December 2025.
• The Board approved the extension of Mr Neville Brink's employment agreement with the
Group as Chief Executive Officer ("CEO") until 31 December 2027, originally set to end on
31 December 2026.
Mustaq Brey Neville Brink
Chairman Chief Executive Officer
Cape Town
20 May 2026
DECLARATION OF INTERIM DIVIDEND NUMBER 164
Notice is hereby given that the Board of Directors of Oceana has declared an interim gross cash
dividend of 110 cents per share, out of current earnings, in respect of the period ended 31 March
2026. Where applicable, the deduction of dividends withholding tax at a rate of 20% will result in
a net dividend amounting to 88 cents per share.
The issued share capital at the declaration date is 129 779 645 ordinary shares. The Company's
tax reference number is 9675/139/71/2. The relevant dates for the dividend will be as follows:
Last day to trade cum dividend Tuesday, 23 June 2026
Commence trading ex-dividend Wednesday, 24 June 2026
Record date Friday, 26 June 2026
Dividend payment date Monday, 29 June 2026
Share certificates may not be dematerialised or rematerialised between Wednesday, 24 June
2026 and Friday, 26 June 2026 (both dates inclusive).
This short-form announcement is the responsibility of the directors and is only a summary of the
information in the condensed consolidated interim results released on SENS on Thursday, 21 May
2026 and does not contain full or complete details. Any investment decision should be based on
the full announcement which is available on our website:
www.results.oceana.co.za/interim-results-2026 and on
https://senspdf.jse.co.za/documents/2026/jse/isse/oce/HY26.pdf as well as via our JSE sponsor
at jsesponsor@standardbank.co.za.
Group Company Secretary
Cape Town
21 May 2026
JSE Sponsor – Primary Listing
The Standard Bank of South Africa Limited
NSX Sponsor – Secondary Listing
Old Mutual Investment Services (Namibia) (Proprietary) Limited
Date: 21-05-2026 07:05:00
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