February 12, 2014
Pacific Andes's Q1 revenue up 2%
Boosted by its subsidiary China Fishery Group, Pacific Andes Resources Development saw its first-quarter revenue rise 2% to HKD2.4 billion (US$309 million).
For the three months to December 28, revenue from the fishery and fish supply division increased by 34.4% to HKD1.1 billion (US$142 million) on-year. This makes up 46.7% of total revenue. This was mainly due to contributions from Copeinca ASA, the fishmeal and fish oil business recently acquired by China Fishery.
With the successful acquisition of Copeinca ASA ("Copeinca"), an Oslo-listed fishmeal and fish oil business, Pacific Andes is now one of the largest producers of fishmeal and fish oil in Peru, and one of the leading fishmeal and fish oil exporters in the world.
Net profit attributable to equity holders decreased to HKD103.8 million (US$13.4 million), mainly attributable to a fair value gain on derivative contracts, amounting to HKD107.9 million (US$14 million), recorded in the last corresponding period.
Gross profit increased by 56.5% to US$44.3 million in the first quarter of fiscal year 2014. Earnings before interests, taxes, depreciation and amortisations (EBITDA) increased by 43.1% to US$63.3 million. Net profit after tax rose to US$15.7 million, an increase of 15.2%. Revenue increased by 34.4% to US$145.2 million reflecting contributions from Copeinca. Revenue from the Peruvian Fishmeal Operations, which accounted for 50.8% of total revenue, increased by 3.88 times to US$73.8 million.
The 2013 second fishing season for Peruvian Anchovy began on November 12, 2013 and finished on January 31, 2014. As a result of the healthy biomass and good weather conditions, the enlarged Peruvian fishmeal and fish oil operation was successful in catching 100% of its quota for the 2013 second fishing season.
The Group remains committed to its strategy of building a strong and sustainable capital structure and improving its debt metrics. Refinancing of China Fishery's bridge loan is targeted to be completed in the second quarter of fiscal year 2014.
