Oceana FY2025: Strong African growth cushions blow from global fish oil price crash

Key topics:Global fish oil prices halved, slashing group operating profit and driving steep declines in EPS and headline earnings.African operations surged, with wild-caught seafood swinging to a R222m profit and Lucky Star delivering higher revenue and margins.Balance sheet remains sound, with full covenant compliance and R791m in undrawn facilities despite commodity-driven pressure.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here..BizNews Reporter.Oceana Group has released its audited results for the year ended 30 September 2025, delivering a mixed performance marked by a sharp decline in group profitability despite strong operational gains in its African businesses. The results reflect the impact of one overwhelming external factor: a global collapse in fish oil prices that halved the US dollar selling price year-on-year.The slump – triggered by the recovery of Peru’s anchovy resource and a surge in global supply – erased much of the benefit of higher fishmeal and fish oil volumes, crushing profitability in the group’s largest earnings contributor. While several divisions achieved strong volume growth, the pricing correction pushed group earnings materially lower.Fish oil price crash dominates group performanceGroup revenue edged slightly lower to R9.99 billion (2024: R10.06 billion), while operating profit dropped sharply from R1.63 billion to R1.25 billion. Profit after tax fell to R724 million, down from R1.11 billion, and basic earnings per share declined to 562.4 cents, compared to 920.9 cents the prior year. Headline earnings showed a similar trend, falling to 564.8 cents from 917.6 cents.The board declared dividends per share of 285 cents, considerably lower than the 495 cents declared in 2024.The largest drag came from the Fishmeal and Fish Oil (USA) division, where operating profit fell to R537 million, less than half the R1.18 billion recorded in 2024. The African fishmeal and fish oil operations also weakened, with operating profit declining to R26 million from R79 million despite higher catch volumes.Interest expense increased from R277 million to R342 million, adding further pressure to the bottom line.A significant area of audit scrutiny was the R5.4 billion Daybrook goodwill and other intangible assets – 62.6% of non-current assets. Stress testing was performed given the commodity-price volatility, but the Audit Committee was satisfied that no impairment was necessary.African operations deliver strong turnaroundAgainst these global headwinds, Oceana’s African operations delivered a standout performance, underscoring the resilience of the group’s diversified portfolio.Operating profit across African businesses rose 58%, driven by a dramatic turnaround in wild-caught seafood and steady gains in Lucky Star foods.The Wild caught seafood division swung from a R53 million loss in 2024 to a R222 million operating profit in 2025. A record year in the hake business and improved horse mackerel performance were the key contributors.The Lucky Star canned foods division reported higher revenue of R4.87 billion (2024: R4.59 billion) and improved operating profit of R468 million, up from R428 million, despite ongoing pressure on South African consumers.Both the South African and US fishmeal and fish oil businesses achieved higher catch volumes and increased sales, but price weakness overshadowed these gains.Balance sheet stable, covenants metDespite the earnings decline, Oceana maintained balance-sheet strength. The company met all South African and US dollar loan covenants, including net debt-to-EBITDA, interest cover and debt-service cover metrics. The group reported R791 million in undrawn working capital facilities and reaffirmed that it remains a going concern for at least the next 12 months.Management credited the group’s species and geographic diversification strategy as a critical shock absorber during volatile commodity cycles.OutlookOceana closes FY2025 as a business navigating two starkly contrasting realities: a robust, fast-improving African performance and a global commodity downswing that has significantly dented profitability. While fish oil prices remain the major swing factor, management expects operational discipline, improved catches, and the strength of Lucky Star and wild-caught seafood to support recovery once markets stabilise..Read the results in full by downloading the PDF below

Oceana FY2025: Strong African growth cushions blow from global fish oil price crash

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