China Fishery Group trawler. (Photo Credit: CFO)
SINGAPORE
Tuesday, August 12, 2014, 03:30 (GMT + 9)
China Fishery Group Limited reported revenue amounting to USD 155 million and a net profit of USD 19.6 million for the April-June quarter, figures that account for year-on-year increases of 1.7 per cent and 26.6 per cent, respectively.
And for the nine months that ended in June this year, the firm reported an inter-annual increase in gross profit of 30.9 per cent.
“We have been transforming the Group so that it is strongly positioned to meet the increasing demand for fishmeal and fish oil from the growing aquaculture and animal farming sectors,” pointed out Ng Joo Siang, Group Managing Director.
And he added: “We are pleased with our performance for the quarter which reflects our commitment to this strategy. Looking ahead to the next quarter, the Group will maintain its focus on consolidating the enlarged Peruvian Fishmeal Operations, realising maximum value from the synergies and efficiencies generated and focusing on cash conversion and net debt reduction.”
The Group highlighted the revenue from the Peruvian Fishmeal Operations in Peru, accounting for 67.6 per cent of the total, represented an increase by 2.9 times from USD 83.3 million to USD 324.6 million, and reflected increased contribution from the enlarged Peruvian Fishmeal Operations incorporating Copeinca AS.
Furthermore, the revenue from the Contract Supply Business accounted for 27.1 per cent of total revenue, a decrease by 59.5 per cent from USD 320.8 million to USD 130.1 million, due primarily to the termination and non-renewal of the Long Term Supply Agreements.
Besides, the revenue from the CF Fleet operations accounted for 5.3 per cent of total revenue, an increase by 33 per cent, from USD 19.1 million to USD 25.4 million, mainly as a result of higher catch and sales volume recorded from the fishing operations in Namibia.
Despite a 57 per cent increase in overall sales volume, cost of sales and vessel operating costs increased by only 6 per cent, changing from USD 296.2 million to USD 313.8 million, which was mainly attributable to the increase in productivity and broader economies of scale achieved in the enlarged Peruvian Fishmeal Operations.
The firm revealed a gross profit increased by 30.9 per cent, changing from USD 127 million to USD 166.2 million, and a gross profit margin that improved from 30 per cent to 34.6 per cent.
The EBITDA increased by 16.7 per cent, changing from USD 182.9 million to USD 213.4 million, while EBITDA margin increased slightly from 43.2 per cent to 44.5 per cent.
China Fishery also stressed that, all in all, the net profit decreased by 24.7 per cent, changing from USD 70.2 million to USD 52.9 million, due primarily to higher finance costs and income tax expenses in Peru.
As to the fourth quarter this year, despite the Group’s lower catch volume in Peru largely due to El Niño effect, the Group is confident that the higher average selling prices of fishmeal and fish oil will be able to partially compensate for the reduction in sales volume.