August 12, 2010

 

Pacific Andes reports increase in net profit for Q3

 

 

Global frozen fish supplier Pacific Andes Resources Development Limited (PARD) has reported that its third quarter net profit increased by 35.4% on-year to HKD218 million (US$28 million).

 

PARD saw revenue growth of 5.5% in the nine months (9MFY2010) for the financial year ending September 28, 2010 to HKD 6,228.8 million (US$802 million) from HKD 5,905.8 million (US$760.8 million) in the same period of 2009.

 

Gross profit rose by 24.4% from HKD1,240.8 million (US$159.85 million) to HKD 1,543.5 million (US$198.84 million), and Singapore Exchange Mainboard-listed PARD's gross profit margin grew from 21% to 24.8%. The group's net profit climbed by 10.8% to HKD939.4 million (US$121 million) from HKD847.6 million (US$109.2 million).

 

Revenue from the fishing division - which made up 54.5% of total revenue - in 9MFY2010 jumped by 14.8% from HKD2,954.9 million (US$380.67 million) to HKD 3,392.3 million (US$437 million), mainly attributable to higher catch volumes in the North Pacific and higher fishmeal product sale prices.

 

Revenue from the frozen fish supply chain management division, which made up 45.5 % of revenue, fell by 3.9% from HKD 2,950.9 million (US$380.16 million) to HKD2,836.5 (US$365.42 million) due to lower sales volume.

 

"We will continue to focus on strengthening our distribution in the PRC as well as in Eastern Europe and Africa to further increase the sales volume of frozen fish," Chairman and Executive Director Ng Joo Siang said.

 

Last month, the group's subsidiary China Fishery Group Limited finalised a private placement of 113.5 million new shares and 26.7 million warrants to The Carlyle Group. The gross proceeds of US$150 million will be spent mostly on strategic acquisitions and to obtain additional fishing quota.

 

"With a continuing strong demand for our fish products, higher operating efficiencies and economies of scale, I am confident that the group is well-positioned to sustain growth and deliver positive results for the current financial year," Ng added.

 

For fishing operations, management anticipates that a higher Peruvian quota share after the acquisition of two Peruvian fishing companies last May will expand the group's production volume of fishmeal and fish oil, and further improve economies of scale and operating efficiencies.

 

Also, the group's start-up South Pacific operations will keep benefiting from the experience earned in fleet management and operations.

 

The frozen fish SCM division will go on profiting from global growth in demand for fish, particularly in the PRC. The Group will keep strengthening its distribution in the PRC plus Eastern Europe and Africa to increase the sales volume of frozen fish.

 

PARD expects further growth for the rest of the financial year barring unexpected circumstances.