Sea Harvest Group, the diversified South African fishing and food company chaired by businessman Fred Robertson, reported resilient results for the first half of 2026, with net profit climbing nearly 2% to $20 million as revenue declined by more than 5% to R3.29 billion ($203.9 million) in the six months to June 2026.

Earnings rise despite revenue decline

The company’s results showed group net profit climbing 1.81% to $20 million. Revenue, however, declined by 5.52% from R3.49 billion ($215.8 million) in the prior half-year to R3.29 billion ($203.9 million) in the six months to June 2026, as strong pricing and cost controls offset weaker fishing volumes and currency headwinds.

Sea Harvest’s overall revenue from continuing operations fell 6% to R3.29 billion ($203.9 million), while gross profit declined 8% to R1.05 billion ($64.8 million). The group said double-digit price increases across its businesses, operating efficiencies and disciplined cost controls helped mitigate lower volumes, higher fuel costs, reduced hake quotas and currency headwinds.

Other operating income stood at R133 million ($8.2 million), including R92 million ($5.7 million) from net foreign exchange and fuel hedge gains. The disposal of Ladismith to Fairfield Dairy Proprietary Limited, completed in April 2026, also generated proceeds that were used to reduce debt.

EBIT increased 2% to R547.4 million ($33.9 million), from R535.9 million ($33.2 million) a year earlier, while the EBIT margin expanded to 17% from 15%. Profit after tax from continuing operations increased 10% to R308.8 million ($19.1 million), compared with R281.3 million ($17.4 million) in the prior-year period. Basic headline earnings per share climbed 14% to 97 cents from R0.85.

Hake business drives performance

Sea Harvest Hake remained the group’s strongest-performing division despite a 5% reduction in the hake total allowable catch and a 9% decline in catch rates.

Revenue from the division increased 7% to R2.1 billion ($130 million), supported by firm global demand for sustainable whitefish. Sales volumes declined 4%, but prices increased 14% in real terms, helping offset lower catches and a stronger South African rand.

EBIT from the hake business increased 7% to R463 million ($28.7 million), while its EBIT margin remained at 22%. Foreign exchange and fuel hedge gains, alongside disciplined cost management, helped protect profitability.

Pelagic and aquaculture face pressure

Sea Harvest’s Pelagic division had one of its weakest industrial fishing seasons, with fishmeal and fish oil sales volumes falling 53%. Revenue dropped 19% to R711 million ($44 million), while EBIT declined 15% to R122 million ($7.6 million). Stronger pilchard catches, improved canned fish margins and cost control helped limit the impact of lower industrial fish volumes.

Aquaculture revenue fell 18% to R136 million ($8.4 million), mainly due to weaker sales of abalone products and feed. However, cost cuts and market diversification reduced its loss before interest and tax to R13 million ($0.8 million), from R39 million ($2.4 million) a year earlier.

Australian operations hit by fishing ban

Sea Harvest’s Australian business was materially affected by the Pilbara fish trawl ban and the delayed start of prawn fishing seasons in Shark Bay and Exmouth.

Revenue fell 30% to R317 million ($19.6 million), although prawn catch volumes increased 20% from the prior-year period. Tropical Cyclone Narelle also caused extensive damage to fleet and land-based infrastructure in Exmouth, including the write-off of one vessel.

The Australian segment reported a loss before interest and tax of R25 million ($1.5 million), compared with EBIT of R0.3 million in the first half of 2025. Management expects earnings from the Australian business to be weighted toward the second half because of its seasonal nature.

Sea Harvest strengthens balance sheet

Total assets declined 11.48% from R10.16 billion ($628.67 million) in H1 2025 to R8.99 billion ($556.46 million) in H1 2026. Meanwhile, retained earnings edged up 0.35% from R1.97 billion ($121.76 million) to R1.98 billion ($122.2 million) over the same period.

Sea Harvest also declared its first-ever interim cash dividend of R0.24 per share, equivalent to approximately $0.015 per share. After the applicable 20% dividend withholding tax, shareholders will receive a net dividend of 19.2 cents per share. The group reduced net debt by R560 million ($34.7 million) to R1.66 billion ($102.8 million), improving its net debt-to-EBITDA ratio to 1.1 times from 1.4 times at December 2025 and 2.1 times a year earlier.

Outlook remains focused on pricing and debt reduction

Sea Harvest expects demand in key export markets to support its hake business, despite pressure from lower quotas, inflation, higher fuel costs and a stronger rand. Fishmeal and fish oil prices should support the Pelagic division, although low fish catches and uncertainty over pelagic herpesvirus remain concerns.

Aquaculture is entering the second half with better product quality, cost savings, broader product offerings and improved pricing, while the Australian prawn business has started strongly. Following the Ladismith disposal, Sea Harvest remains focused on costs, margins, cash generation and reducing debt. The board declared an interim dividend of R0.24, payable October 12, 2026.