& GROUP CEO
2022 was a groundbreaking year for us as Oceanus sailed forth in the execution of our growth plans. The Oceanus team continued their hard work and took big strides, successfully achieving yet another record turnover.
As part of the growth strategy in our Tech Up phase, the Group rechanneled its profits into value-adding opportunities through well-placed investments in 2022. This will stand us in good stead for the continuous, exponential growth that Oceanus has consistently delivered over the past few years.
Oceanus is and has always been a game changer. This means that shareholders can look forward to Oceanus setting off a series of industry-changing waves. The innovation-driven plans that we implement today will see Oceanus significantly disrupting the food industry of tomorrow.
In FY2022, our total revenue soared 67% year-on-year, hitting an all-time high of S$234.5 million. This also marks the second consecutive year where the Group exceeded the S$100 million milestone, attributed to the Group’s successful implementation of its global distribution market share strategy.
In tandem with the boost in revenue, gross profit for the period increased 79% to S$18.4 million from FY2021. Other operating expenses rose sharply by 435% to S$16.6 million in FY2022 from S$3.1 million in FY2021, a reflection of what we previously shared with shareholders last year – that Oceanus shall begin significant investments to drive growth.
This includes, firstly, the building up of human capital across all departments globally, from procurement, sales, innovation to IT. Secondly, we relocated our global headquarters to a larger premise to accommodate our rapidly growing workforce.
Moving ahead, the Group will continue to ramp up on our Tech Up plans and build up our Innovation segment, both of which are vital for the future of Oceanus as a cutting-edge FoodTech company.
As of 31 December 2022, our balance sheet shows a healthy positive net asset position of S$58.7 million, which is a significant increase of 76% from the previous year’s S$33.3 million. Our net working capital position has also
improved by a significant 127% from S$27.9 million as of 31 December 2021 to S$63.3 million as of 31 December 2022.
Anchoring our Four Pillars of Growth Aquaculture and seafood continue to be a cornerstone of Oceanus. Even as we successfully evolve our Food Production business from abalone hatchery to FoodTech, we continue to leverage on our experience and strength in seafood production, processing, and trading. Since 2021, we have expanded our seafood portfolio to include prawn, sea cucumber, crab and fish (tuna, pangasius, etc). In 2022,
we traded about S$1.5 million worth of seafood in Singapore, China, Southeast Asia, Australia, the United States and Europe. Over the next few years, Oceanus plans to grow our seafood production and set up global operations.
Under our Distribution business, Oceanus’ product portfolio has grown significantly over the past year. Today it ranges from FMCG products such as beverages, snacks, cereals, to chilled and frozen meat (beef, chicken, pork), sugar, grains and many more under our key platforms and brands. In 2022, we crossed a significant milestone, moving an average of about 100 containers monthly of food products across ASEAN countries.
This year, we have also added fruits to our portfolio. By working closely with banana producers from Philippines and durian producers in Malaysia and Thailand via our newly established subsidiary King M International Pte Ltd, we aim to capture the growing demand for tropical fruits in China and Southeast Asia.
Oceanus recognises that commodity and food prices can be affected by geopolitical trade disputes and unpredictable weather patterns. To support its food security mission, the company established ISC SG Pte Ltd in 2022. This subsidiary focuses on distributing food commodities, including grains, sugar, and rice, among others. The company plans to capitalise on its global trading network and strengthened value chain to ensure a seamless distribution of products from first to final mile.
In 2021, under the Group’s Services segment, Oceanus established Oceanus Tradelog (OTL) to support the warehousing and logistics services needed for our Food Production and Distribution Pillars. We also provide 3PL services for eCommerce platforms and local distribution needs. OTL is currently serving customers and business partners from Singapore, Southeast Asia, Central Asia, Middle East and China.
On the digital marketing side, we made a strategic move to consolidate our award-winning multimedia capabilities – AP Media, Resolute Communications, Anomalyst Studio and Scion Technik – under one brand, Oceanus Media Global (“OMG”). OMG has been integral in the Group’s digital transformation. We have made another breakthrough, launching our very own S$5 million futurealistic studio in May 2022, which will help businesses create customised immersive media content. The first-of-its-kind in SEA, the one-stop shop studio uses high-end virtual production technology to develop next-generation storytelling experiences in a range of markets that include concerts, corporate events, as well as film and TV production.
As part of Oceanus’ long-term strategy to grow our Innovation business segment, we looked for strong business partners who share our vision and passion. In August 2022, Kingsman Exim was set up to strengthen Oceanus’ eCommerce presence in Singapore, China and Southeast Asia. SGFarmer will focus on abalone, farm produce and other products, while Kingsman specialises in beverages.
SUPERCHARGING GROWTH WITH INNOVATION
In our next phase of growth, Oceanus sets its sights on becoming the global FoodTech Company empowered by technology, to create and capture greater value in the global food value chain. To achieve this goal, the Group
will be introducing the Oceanus Digital Network (”ODIN”), which synergises the capabilities of our subsidiaries onto one single platform.
ODIN is a managed marketplace solution that helps sellers alleviate their struggles, by eliminating cross-border trading friction and risk to make more profit. Supported by ODIN Pay, a digital cross-border payment software, users can enjoy competitive exchange rates to secure foreign currencies on favourable terms. Soon, ODIN Pay will also offer supply chain financing capabilities so users can gain access to funds needed to finance trades. The Group targets ODIN to access a global market outreach in the next 3 years.
Other than ODIN, our innovation arm has also developed ShopFront.Club. It is an innovative eCommerce platform that provides suppliers with a new way to tap into their reseller network and drive revenue growth.
The platform provides resellers with an easy-to-use eCommerce website builder, allowing them to create a seamless shopping experience for their customers without the upfront capital costs of owning inventory or logistical challenges in delivering products.
ShopFront.Club streamlines the sales process for both suppliers and resellers. By leveraging the power of the platform, suppliers can optimise their sales channels, increase their reach, and ultimately drive growth.
A WORD OF THANKS
I would like to congratulate Mr Sammul Lin, who has been appointed as the new Group Chief Operating Officer in September 2022. As the Group COO, he will oversee and manage day-to-day operational functions of the Group. His deep expertise in international trade and wealth of experience will be invaluable to the Group’s overall operations and expansion plans.
Finally, without the support of the Oceanus family, as well as our external stakeholders, the Group would not be where it is today. I am truly grateful. I would also like to express appreciation on the Board’s behalf to the Oceanus team, for their tenacity, diligence, and confidence in guiding the Group to new heights. Last but not least, I would like to express my profound gratitude to our shareholders, business partners and associates for their unwavering support.