Iconic South African Brand Triumphs Over Supply Challenges

This fishing and food processing company released a trading update recently, indicating encouraging figures.

According to the update, the organization expects to see a marked jump in both its earnings per share and Headline Earnings Per Share (HEPS).

Oceana is projecting earnings per share to rise between 45% and 55% from the previous year, targeting a range of 815-870 cents.

HEPS is anticipated to grow by 46% to 56%, expected to fall between 825 and 880 cents, compared to last year’s figure of 564.8 cents.

The company credits this earnings boost to better operating profits and robust performance across several sectors.

“The expected increase in earnings is primarily attributable to higher operating profit and lower interest costs,” the company stated.

“Operating profit improved on stronger performances from the fishmeal and fish oil (USA), and wild-caught seafood segments, driven by higher volumes and improved pricing, and a solid contribution from Lucky Star Foods despite limited inventory.”

Oceana had previously indicated that Lucky Star experienced mixed results in the last financial year, primarily due to supply constraints.

“Lucky Star Foods delivered mixed results for the period, with a strong first half followed by a subdued second half through to the end of August,” Oceana Group noted in September 2026.

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

The supply issues also negatively affected the brand’s canning operations, which faced difficulties in managing fixed costs due to lower production levels.

“Raw material shortages also reduced local canning production volumes by 60%, placing upward pressure on per-unit production costs due to fixed production costs not being fully absorbed,” the company added.

Despite such challenges, operating margins benefited from higher net realized sales values, reductions in freight and inventory holding costs, a better sales mix, and increased volumes of locally caught pilchards.

The inadequate supply eventually led to Lucky Star’s inventory levels being lower than the previous year.

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

Lucky Star consistently earns accolades at major South African consumer awards, frequently claiming top positions in lists such as the AskAfrika Icon Brands Awards and the Sunday Times Top Brand Awards.

The Oceana Group is set to reveal its financial results for the past fiscal year on Thursday, 26 November 2026.

Oceana Group expected financial results