Pacific Andes resources development delivers continued growth in 9MFY2010

August 31, 2010 09:33

Singapore Exchange Mainboard-listed Pacific Andes Resources Development Limited ("PARD" or the "Group")(SGX: P11.SI), a leading global frozen fish supplier with an integrated supply chain spanning industrial fishing, global sourcing and ocean transportation reported its results for the third quarter ("3QFY2010") and nine months ("9MFY2010") for the financial year ending 28 September 2010, reports with reference to Pacific Andes.

PARD posted revenue growth of 5.5% in 9MFY2010 to HK$6,228.8 million from HK$5,905.8 million in the same period last year. Gross profit increased by 24.4% from HK$1,240.8 million to HK$1,543.5 million, while the Group's gross profit margin increased from 21.0% to 24.8%, a reflection of economies of scale and the positive impact of the Group's ongoing initiatives to improve operating efficiencies. The Group's net profit increased by 10.8% from HK$847.6 million to HK$939.4 million.

In 9MFY2010, revenue from the fishing division, which accounted for 54.5% of total revenue, increased by 14.8% from HK$2,954.9 million to HK$3,392.3 million. The revenue increase was mainly driven by higher catch volumes from the North Pacific trawling operations, as well as higher selling prices for fishmeal products. Revenue from the frozen fish supply chain management ("frozen fish SCM") division, which accounted for 45.5% of revenue, dropped by 3.9% from HK$2,950.9 million to HK$2,836.5, primarily due to lower sales volume.

The PRC remained the Group's largest market in 9MFY2010, accounting for 83.0% of total revenue, followed by Europe with 7.4% and East Asia contributing 7.0%. The remaining 2.6% comes from sales to other markets globally. 

Commenting on the Group's outlook, Chairman and Executive Director, Mr. Ng Joo Siang said: "We continue to be positive about the growth potential of both our fishing divisions and frozen fish SCM division. For the fishing operations, we expect that a higher Peruvian quota share following the acquisition of two Peruvian fishing companies in May 2010 will increase the Group's production volume of fishmeal and fish oil, and will further enhance economies of scale and operating efficiencies. In addition, the Group's start-up South Pacific operations will continue to benefit from the experience gained in fleet management and operations."

"Our frozen fish SCM division is set to benefit from worldwide growth in demand for fish, particularly in the PRC, where demand for fish as a healthy source of protein continues to grow. We will continue to focus on strengthening our distribution in the PRC as well as in Eastern Europe and Africa to further increase the sales volume of frozen fish." Mr. Ng added.

In July 2010, the Group's subsidiary China Fishery Group Limited completed a private placement of 113.5 million new shares and 26.7 million warrants to The Carlyle Group. The gross proceeds of US$150 million will be used primarily for strategic acquisitions and to acquire additional fishing quota. Management believes that in addition to the new capital from the placement that will help fuel its expansion plans, China Fishery can also benefit from leveraging Carlyle's strategic insights, and their extensive network, acquisition and financing expertise.

"With a continuing strong demand for our fish products, higher operating fficiencies and economies of scale, I am confident that the Group is well-positioned to sustain growth and deliver positive results for the current financial year," Mr. Ng concluded.

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