Lucky Star’s owner, Oceana reports surge in profit as poultry industry suffers

Lucky Star’s owner, Oceana reports surge in profit as poultry industry suffers

Bruce Whitfield speaks to Neville Brink, CEO Oceana.

As the South African poultry sector feels the impact of a devastating avian flu outbreak, the country’s fishing industry seems to be doing swimmingly well.

The South African-based fishing and food processing company, Oceana Group reported an increase in headline earnings of 28.9% to R980 million in the year to 30 September 2023.

This was driven by strong performances from its U.S fishmeal and fish oil business, which increased operating profit by 30%.

Oceana Group is an important participant in the South African, Namibian and US fishing industries.

CEO at Oceana, Neville Brink says the devastation in the poultry sector has resulted in an increase in fish sales.

We see our main competitors not being other pilchards, but the chicken, the eggs, the polonies…which is affordable protein. They’re under pressure, they put prices up and we tried to hold our prices.

Neville Brink, CEO – Oceana

The other issue is obviously loadshedding. Chicken is perishable. Township stores are reluctant to carry too much perishable goods due to the potential of spoilage. That’s certainly played into our favour.

Neville Brink, CEO – Oceana

We’re not under pressure to relook at prices. We’ll take a view in the early part of the new year to see where our competitors are, and then decide.

Neville Brink, CEO – Oceana

We’re cautiously optimistic about the growth of Lucky Star. It’s a great brand.

Neville Brink, CEO – Oceana

Oceana Group’s core business is the catching, processing and distribution of canned fish, fishmeal, fish oil, lobster, horse mackerel, squid and hake.

Volume sales of the popular Lucky Star canned fish also grew 9% to 9.6 million cartons.

The total dividend was increased by 25.7% to 435 cents per share for the year.

Listen to the audio for more.