Oceana’s Lucky Star brand might have sold 8% more cans over the past 11 months, but even with an increase in selling prices and a reduction in freight costs, the past five months have been less stellar as sales volumes declined by 5% due to above-inflation increases in energy, the cost of tin cans and tomato paste, and the impact of the weaker rand against the US dollar on the cost of imported raw materials.
On the local front, canning production volumes in South Africa were up by 15% to 4.7 million cartons (compared with 4.1 million cartons in August 2022). The company expects strong demand going forward, driven by continued demand for affordable and shelf-stable protein.
In its SA fishmeal and fish oil business, strong fish oil pricing and the weaker rand resulted in a 32% increase in average rand selling prices for the 11-month period. Sales volumes of 21,246 tonnes were also 8% lower than the prior year-to-date period and a 24% drop in production volumes due to adverse weather conditions impeding fishing.
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