China Fishery Group (Pacific Andes) announces 9MFY2011 results
Singapore Exchange Mainboard-listed industrial fishing company China Fishery Group Limited ("China Fishery" or the "Group") (SGX: B0Z.SI) today reported its results for the third quarter ("3QFY2011") and nine months ("9MFY2011") for the financial year ending 28 September 2011, reports www.megafishnet.com with reference to the Group.
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- Strong growth in the sales volume of fishmeal and fish oil
- Increased revenue contributions from the factory vessel fleet
- Expects continued strong demand from its existing market, and sees huge potential in the African market
Group revenue increased 19.2% to US$190.0 million and gross profit increased 18.1% to US$73.4 million despite an increase in cost of sales and vessel operating cost. Net profit increased 5.0% to US$37.4 million.
Revenue from the Peruvian fishmeal operations, which accounted for 42.3% of total revenue, rose significantly by 79.6% to US$80.5 million as a result of a 80.0% increase in sales volume of fishmeal and fish oil and to a lesser extent the increase in prices of fishmeal and fish oil. The higher sales volume was due mainly to 2 factors: firstly, a higher total allowable catch volume for the first fishing season in 2011; and secondly, higher inventory carried forward for sale from 2QFY2011.
The Group has fully utilised its fishing quota for the first fishing season in 2011. The catch volume of Peruvian Anchovy increased 56.6% from 139,429 MT to 218,274 MT. Production volume of fishmeal and fish oil rose from 51,108 MT to 76,825 MT in line with the higher catch volume.
Revenue from the trawling operations, which accounted for 57.7% of total revenue, benefited from increased contribution from the factory vessel fleet. Revenue contribution from the factory vessel fleet increased by 193.9% to US$19.7 million following moves by the Group to maximise the utilisation of the fleet by deploying 2 fishing vessels to the South Pacific whilst the remaining fleet continued to operate in the North Atlantic Ocean. The North Pacific trawling operations recorded a 16.7% decrease in revenue to US$89.9 million due mainly to lower sales volume but higher inventory carried forward for sale in the next quarter.
Group revenue increased 12.7% to US$490.0 million and gross profit rose 8.6% to US$181.7 million in line with the higher revenue. Net profit grew 2.1% to US$102.9 million. Earnings per share was 10.2 US cents, down 12.1% due mainly to an enlarged equity base after the new share placement in July 2010.
Revenue from trawling operations, which accounted for 78.4% of total revenue, increased 11.4% to US$384.0 million attributed mainly to higher contributions from the Group's factory vessel fleet. Meanwhile, revenue from the Peruvian fishmeal operations increased 17.6% to US$106.0 million. The increase was attributed mainly to higher prices achieved on fishmeal and fish oil.
Commenting on the Group's outlook, Group Managing Director Mr. Ng Joo Siang said, "We are pleased to have achieved continued revenue and profit growth for 3QFY2011 and 9MFY2011. Looking ahead to 4QFY2011, higher inventory of fishmeal and fish oil would convert to improve revenue despite 4QFY2011 not being a fishing season in Peru. We expect contributions from the Peruvian fishmeal operations to continue to grow, supported by strong demand for fishmeal in the PRC."
"The Group has recorded a year-on-year increase in sales of fish products to the African market. Sales has increased from US$8.0 million to US$60.0 million. We recognise the huge market potential for its products in Africa and expect further growth in sales."
"We will continue to identify new and sustainable fishing grounds with rich resources to maximize fleet utilisation. Barring any unforeseen circumstances, we are confident of achieving improved profitability for the financial year." Mr. Ng concluded.