JSE-listed fishing company Oceana says its revenue for the 11 months to August 31 was in line with that of the 11 months to August 31, 2025, while operating profit increased, driven by improved performances from Lucky Star foods, fishmeal and fish oil (US) and Wild caught seafood, and partly offset by continued pressure in the fishmeal and fish oil (Africa) segment, where lower production and sales volumes resulted in a significant operating loss.

In a trading statement, the company says its Lucky Star foods division delivered mixed results for the period, with a strong first half followed by a subdued second half through to the end of August.

Shortages of frozen fish raw material constrained canned pilchard availability and slowed sales momentum.

Total sales volumes declined by 5%, driven by a 9% decrease in canned fish volumes, as limited inventory prevented the business from fully meeting demand. Strong canned meat sales partly offset this decline, it says.

Raw material shortages in the division also reduced local canning production volumes by 60%, placing upward pressure on per-unit production costs owing to fixed production costs not being fully absorbed.

Despite this pressure, operating margins benefited from higher net realised sales values, lower freight and inventory holding costs, a better sales mix and increased volumes of locally caught pilchards.

Inventory volumes closed significantly lower than the prior period, primarily as a result of the constrained fish supply environment, says Oceana.

Further, its fishmeal and fish oil Africa division saw production volumes decline by 73%, owing to a combination of a decline in industrial fish landings and reduced pilchard trimmings following lower cannery production.

The lower production base resulted in a material increase in per-unit production costs for the period.

Sales volumes decreased by 72%, driven by lower production volumes and reduced product availability. This decline more than offset the benefit of higher pricing, with average fishmeal and fish oil prices increasing by 31% in rand terms.

As a result, the fishmeal and fish oil Africa segment's operating loss increased from the level reported at the interim reporting period, the company says.

Meanwhile, in its fishmeal and fish oil US division, Daybrook delivered a stronger performance for the period, supported by higher sales volumes and improved dollar pricing.

The benefit of operational and pricing improvements was partly offset on translation by the impact of a stronger rand.

Further, Gulf Menhaden landings improved in recent weeks, which lifted cumulative landings to week 21 to 7% above the same period in 2025 and 11% above the five-year average.

Fish oil yields for the 11-month period were slightly lower at 10.7%, which partially moderated the benefit of improved landings. The 28-week fishing season will close at the end of October, the company notes.

Sales volumes increased by 16%, supported by stronger landings and higher opening inventory levels. In dollar terms, average fishmeal prices were largely unchanged owing to the timing of forward-contracted volumes.

Average fish oil prices increased by 24% for the 11-month period, with higher global prices benefiting the second half through to the end of August, Oceana says.

Closing inventory volumes increased by 6%, mainly owing to increased landings during the period.

The performance of its Wild caught seafood segment improved, driven mainly by a strong recovery in horse mackerel. The segment also benefited from fuel hedging gains, with 70% of forecast fuel requirements for the financial year hedged across most of the fleet.

In this division, the hake fleet performed well, with improved landings supported by increased days at sea and higher catch rates. Higher unhedged fuel costs partly offset the benefit of improved landings, while sales volumes increased by 5%. European demand and pricing remain firm; however, the stronger rand against the euro diluted some of these operational gains.

Horse mackerel catch rates improved, particularly in South African waters, helping to absorb higher fuel costs, while total seadays remained stable. Sales volumes increased by 8%, with firm market pricing amid supply shortages, particularly for smaller-sized fish, the primary profit driver.

The squid business reported an operating loss for the period, owing to persistently weak catch rates across the industry.

Oceana expects to release its results for the financial year to September 30 on or about November 26.