Sea Harvest has delivered a resilient set of interim results for the six months ended 30 June 2026, with the seafood group improving profitability and reducing debt despite pressure on fishing volumes, fuel costs and exchange rates.
Revenue from continuing operations declined 6% to R3.29bn, reflecting lower volumes in the Pelagic and Australian businesses and the impact of a stronger rand.
However, firm pricing, strong global demand for sustainable seafood and disciplined cost management helped the group increase EBIT to R547m, from R536m a year earlier.
The improved profitability lifted the EBIT margin to 17%, compared with 15% in the prior period, while profit after tax from continuing operations rose 10% to R309m. Basic headline earnings per share increased 14% to 97 cents.
For Sea Harvest, the results highlight the importance of pricing power and diversification in an increasingly challenging food production and supply environment.
“We have navigated a challenging operating period shaped by geopolitical instability and environmental variability,” says Sea Harvest CEO Felix Ratheb. “Despite these pressures, we delivered a robust set of results, driven by firm price increases and strong global demand for sustainable seafood.”
Hake business anchors performance
The group's core hake business remained the strongest contributor, accounting for 65% of group revenue and 79% of EBIT.
Despite a 5% reduction in the total allowable catch, lower catch rates, a stronger rand and higher fuel prices, revenue increased 7% to R2.13bn. Double-digit real selling price increases helped offset a 4% decline in sales volumes.
Segment EBIT rose 7% to R463m, with the margin maintained at 22%. Export sales accounted for 64% of segment revenue, up from 60%, reflecting continued demand and reduced global whitefish supply.
The performance demonstrates how access to international markets can help South African food producers offset domestic and operational pressures, particularly when global supply constraints support pricing.
Pelagic volumes under pressure
The Pelagic business faced a significantly tougher operating environment, recording one of its weakest industrial fishing seasons on record.
Revenue fell 19% to R711m as volumes declined 30% and the stronger rand weighed on the result. Fishmeal and fish oil prices nevertheless increased by 47% and 76% respectively, helping cushion the impact of lower volumes.
EBIT declined 15% to R122m, although the segment's margin improved from 16% to 17%, supported by canned fish margins, improved pilchard catches and cost control.
The performance underscores the exposure of food producers to environmental variability, while also demonstrating the value of a diversified product mix.
Aquaculture and Australia remain challenged
Sea Harvest's Aquaculture business continued to make progress through cost reductions and greater product and market diversification. Revenue declined 18% to R136m, but the segment narrowed its loss before interest and tax from R39m to R13m.
Meanwhile, the Australian operation was materially affected by the Pilbara fish trawl ban and delayed prawn fishing seasons. Revenue fell 30% to R317m, with the segment reporting a loss before interest and tax of R25m.
Debt reduction strengthens balance sheet
Alongside its operational performance, Sea Harvest made significant progress in reducing its debt burden.
Net debt fell by R560m to R1.66bn, from R2.22bn at 31 December 2025, while the group's net debt-to-EBITDA ratio improved to 1.1 times from 1.4 times at year-end and 2.1 times at June 2025.
The disposal of Ladismith Cheese, combined with strong cash generation, contributed to the reduction.
The group's cash generation and improved financial position have also enabled it to introduce a maiden interim dividend of 24 cents per share.
“Our priorities for the second half of this year are clear,” says Ratheb. “We will harness the strong demand for sustainable seafood and translate pricing into enhanced returns and improved debt reduction.”
Focus remains on sustainable seafood and returns
For the second half of 2026, Sea Harvest plans to focus on catching its allocated hake quota, converting strong demand and pricing into improved returns, and continuing to reduce debt.
The group also intends to direct capital towards businesses with the strongest growth prospects while investing in operational efficiencies.
For the broader food and retail supply chain, Sea Harvest's results point to the growing importance of resilient sourcing, pricing discipline and diversified supply networks as producers contend with climate variability, input costs, currency movements and changing global supply conditions.
Despite the challenges, the group says its longer-term strategy remains focused on sustainable growth and improved returns.
The full report can be found here.
