Despite the challenges, group CFO Brent Robertson believes Premier is financially stable.
Premier Fishing and Brands has released their unaudited interim results for the six months ended 29 February 2020.
Premier group CFO Brent Robertson says:
“It has been a challenging year for the group thus far. Our results are satisfactory, given that we continue to face harsh challenges such as the socio-political unrests in the Far East, Covid-19 and other business challenges over the past 6 months.”
During the interim period, Premier’s EBITDA decreased to R28 million from R69 million, with profit after tax reduced to R20 million from R55 million as a result of the challenges faced. Revenue decreased to R215 million from R287 million.
Group headline earnings decreased to R13 million from R35 million, while headline earnings per share decreased to 4.94 cents per share from 13.49 cents per share and earnings per share decreased to 5.43 cents per share from 13.44 cents per share.
He explains that Covid-19 has had an adverse effect on the fishing industry, on a global scale. The group has also been faced with very low squid catch rates, which were experienced industry-wide, and has led to a sharp decline in revenue and profitability. “The squid division tends to be seasonal in nature, however, the potential and outlook for this division remains positive.”
Despite these challenges, Brent says the group is financially stable with no debt and remains cash positive. “We have put strategies in place to mitigate some of the losses the group has suffered over the last six months. Once the pandemic is under control, we can continue to focus on the group’s growth strategies in relation to the abalone farm expansion as well as pursuing other potential acquisitions. The group looks forward to ending the 2020 financial year on a strong and stable footing, for the sustainability of the group and its shareholders.”