April 18, 2013

Haikui Seafood reports positive financial results for 2012

Haikui Seafood AG, an established seafood processing firm, has reported positive results for revenue and profit margins during the 2012 financial year.

With a total of US$254.5 million, revenue has grown by 28.3%, exceeding the 25% growth mark given by the company for 2012. Accounting for 88.2/5 of the total revenue, frozen seafood products remained the main revenue driver. Revenue in this product segment grew by 28.8%. Canned seafood products accounted for approximately 11.8% of the revenue and generate an increase of 24.5%. The main growth drivers were sales in the international markets, especially in Asia, with strong sales contribution from Taiwan.

Gross profit increased by 32.6%, at US$65.6 million in 2012. Gross profit margin went up by approximately 0.9 percentage points to 25.8%. The higher gross profit margin mainly resulted from increased sales of higher-margin crab products.

As a result of the higher gross margin, the operating profit (EBIT) and the EBIT margin also showed a positive development in the 2012 financial year. EBIT rose by approximately 35.9% on-year. EBIT margin grew by approximately 1.3 percentage points to 22.5%.

Net profit grew by 20.4%, at US$4 million in 2012, bringing net profit margin to 16.5%. The slight decrease of the net profit margin by 1.1 percentage points was mainly due to the increase in income tax expenses as the preferential tax treatment for Fujian Haikui has ceased from 2012 onwards.

In 2012, Haikui Seafood further strengthened its financial position for future investments and growth. Total equity increased by 27.9% on-year while equity ratio improved to 94.3% as of December 31, 2012. Overall cash and cash equivalents showed a significant growth of 90.5%. This was related to the strong operating cash flow, which rose by approximately 141.4% to US$33.4 million.