JSE-listed fishing and food business Sea Harvest has reported a 14% year-on-year increase in headline earnings a share to 97c for the six months ended June 30, while revenue from continuing operations decreased by 6% year-on-year to R3.29-billion, as double-digit price increases were offset by lower pelagic and Australian volumes and a stronger rand.

The company declared a maiden interim cash dividend of 24c a share for the period.

Profit after tax from continuing operations increased by 10% year-on-year to R309-million.

Robust pricing across wild-caught fish partially offset lower volumes, with double-digit real selling price increases achieved, supported by strong global demand for sustainable seafood, the company says.

Sea Harvest reduced its net debt by R560-million to R1.66-billion, down from R2.22-billion as at December 31, 2025. The group net debt-to-earnings before interest, taxes, depreciation and amortisation ratio improving to 1.1 times, down from 1.4 times as at December 31, and down from 2.1 times in the interim period to end June 2025.

The operating period was challenging and was dominated by geopolitical instability and environmental variability, the company says.

Headwinds included a poor pelagic fishing season, a lower hake total allowable catch, higher fuel prices, a stronger rand and the ban on fish trawling in the Pilbara, in Australia, with the combination of these constraining volumes over the period.

The first six months of this year saw exceptionally low pelagic fish availability in South Africa, reflecting changing ocean conditions and low stock levels, the company says.

Pelagic fish consists of industrial fish, mainly anchovy and red-eye, which are used primarily for fishmeal and fish oil, while pilchards are largely canned for human consumption.

The firm price increases, disciplined cost management and diversified earnings base helped offset these pressures. Strong global demand for sustainable seafood supported double-digit price increases, while improved pilchard catches and a stronger Aquaculture performance further supported the results, says Sea Harvest CEO Felix Ratheb.

The disposal of dairy producer Ladismith Cheese and continued focus on cash generation enabled Sea Harvest to reduce net debt by R560-million, he adds.

Despite the pressures, the company delivered a robust set of results, driven by firm price increases and strong global demand for sustainable seafood.

The disposal of Ladismith Cheese marked an important strategic milestone and, together with solid cash generation, contributed to a reduction in net debt.

“Our ongoing focus on cost management supported the overall result, which allowed us to declare our maiden interim dividend of 24c a share,” he says.

“Our priorities for the second half of this year are to harness the strong demand for sustainable seafood and translate pricing into enhanced returns and improved debt reduction.

“Challenges remain, with fishing conditions still under pressure in our pelagic business and fuel prices elevated. Despite these near-term headwinds, we will direct capital to the parts of the Group with the strongest prospects and invest in efficiencies across our businesses. This will support our strategic focus on long-term growth and improved returns,” says Ratheb.

DIVISIONAL RESULTS
The company's core Sea Harvest Hake business, which contributed 65% of group revenue and 79% of group earnings before interest and taxes (Ebit), delivered solid results despite a 5% lower total allowable catch, 9% lower catch rates, a stronger rand and a higher average fuel price.

The hake business increased revenue increased by 7% to R2.13-billion, with 14% higher real selling prices offsetting 4% lower sales volumes and the stronger exchange rate.

The division's Ebit increased by 7% to R463-million, with the Ebit margin maintained at 22%, supported by disciplined cost control, efficiencies and R87-million in foreign exchange and fuel hedge gains.

Further, export sales accounted for 64% of the hake segment revenue, supported by firm demand and reduced global whitefish supply.

The Sea Harvest pelagic division, which accounted for 21% of group revenue and 21% of group Ebit, experienced one of the weakest industrial fishing seasons on record, with fishmeal and fish oil sales volumes declining by 53%.

Revenue from this business division decreased by 19% to R711-million, as a 30% decline in volumes and a stronger rand outweighed 15% price increases.

Fishmeal prices increased by 47% and fish oil prices increased by 76%, while strong local pilchard catches improved cost efficiencies.

The pelagic business's Ebit decreased by 15% to R122-million, although the Ebit margin improved to 17% as canned fish margins and cost control partly offset lower industrial fish volumes.

Sea Harvest's aquaculture division, which accounted for 4% of group revenue, continued to improve through cost reduction and product and market diversification, supported by improved abalone size and quality and firmer US dollar pricing.

Divisional revenue decreased by 18% to R136-million, owing to lower volumes of low-margin abalone products and feed, and a stronger rand. The segment narrowed its loss before interest and tax to R13-million, supported by R23-million in fair value gains on biological assets.

The company's Australia division, which accounted for 10% of group revenue, was materially impacted by lower volumes as a result of the Pilbara fish trawl ban. The ban has been challenged in the High Court in April 2026 and judgment is awaited.

The Western Australian government permanently closed commercial trawl fishing for demersal scale fish in the Pilbara from January 1 under the Prohibition on Commercial Fishing (Pilbara Fish Trawl) Order 2025.

The Pilbara fish trawl business has historically provided steady year-round earnings for Sea Harvest. Once the season started, prawn catch volumes increased by 20%, with a good species and size mix.

The Australia business's revenue decreased by 30% to R317-million owing to the fish trawl ban, the delayed start to the prawn fishing seasons, and lower external engineering activity, with lower volumes partly offset by firm price increases.

This division also implemented a second phase of cost reductions during the period under review.

This business segment reported a loss before interest and tax of R25-million, although the business is weighted towards the second half of the year.