February 14, 2014

China Fishery reports 15.2% on-year profit increase in Q1 2014




For the first quarter of the 2014 fiscal year, China Fishery Group Limited reported a 15.2% on-year increase in its profit after tax to US$15.7 million.


In the quarter that ended on December 28, 2013, revenue increased by 34.4% to US$145.2 million from US$108.1 million, reflecting contributions from Copeinca ASA, an Oslo-listed fishmeal and fish oil business recently acquired by the Group. The Group is now among the leading fishmeal and fish oil producers in Peru and one of the leading exporters of these products in the world.


In first quarter fiscal year 2014, gross profit increased by 56.5% to US$44.3 million from US$28.3 million. Earnings before interests, taxes, depreciation and amortisations (EBITDA) increased by 43.1% to US$63.3 million from US$44.2 million. Net profit after tax rose to US$15.7 million from US$13.6 million, an increase of 15.2%.


"Our strategy of acquisition and consolidation of business in Peru is translating into strong growth for the Group," said Ng Joo Siang, Group Managing Director. "We will continue to integrate our enlarged fishmeal operations during the second quarter of fiscal year 2014 to realise the full benefit from the synergies from our acquisition of Copeinca when the 2014 first season commences in April-May 2014. We are confident of profitability continuing into the next quarter."


Revenue from the Peruvian Fishmeal Operations, which accounted for 50.8% of total revenue, increased by 3.88 times from US$15.1 million to US$73.8 million, an increase due to Copeinca.


Revenue from the Contract Supply Business, which accounted for 40.6% of total revenue, retreated 34.3% from US$89.7 million to US$58.9 million on the back of lower sales volume.


The China Fishery Fleet's revenue, which accounted for the remaining 8.6% of total revenue, increased by 2.79 times to US$12.5 million from US$3.3 million. The increase was due to contributions from fishing operations in Namibia established since second quarter of fiscal year 2013.


China Fishery highlights that as a result of the healthy biomass of Peruvian anchovy and good weather conditions, the Group's enlarged fishmeal and fish oil operations in Peru managed to catch 100% of its quota for the 2013 second fishing season.


The Group says it remains committed to its strategy of building a strong and sustainable capital structure and improving its debt metrics and plans to complete refinancing its bridge loan in the second quarter of fiscal year 2014.