Oceanus Posts Record Revenue; Reverses from Net Loss A Year Ago to Earnings of $3.1 Mil for FY20
Homegrown premium seafood and fast-moving consumer goods value chain manager Oceanus Group has reported earnings of $2.1 million for the 4QFY2020 ended December, compared to the $3.2 million loss in the same period a year ago.
For the FY2020 the group posted earnings of $3.1 million, reversing from the $4.0 million loss in FY2019.
Revenue for the 4QFY2020 surged over 26 times, or 2,563% y-o-y, to $56.8 million, from the $2.1 million posted in 4QFY2020.
For the FY2020, revenue grew almost 10 times higher, or 855% y-o-y, to $91.7 million, from $9.6 million in FY2019.
The full-year revenue represents the highest level of turnover for the group, and is attributable to the increase of contract farming and rental revenue from the group’s Aquaculture segment, which contributed some $4.0 million to the total revenue.
According to the group, its change of business model in the Aquaculture segment to include farm lease-model as well as contract farming arrangements with other aquaculture farmers in the region has allowed the group to maintain fixed income levels and forego high direct operating costs associated with a full-scale juvenile farming.
The group, during the year, saw higher revenue of $84.7 million from its Distribution segment in fast-moving consumer goods (FMCG), from the $6.5 million in FY2019.
In addition, the group’s Services segment saw higher turnover of $2.9 million in FY2020 from FY2019’s turnover of $2.1 million.
Despite the higher revenue, the group has managed to reduce its other operating costs by 32% y-o-y to $3.5 million.
Gross profit for the FY2020 was up 38% y-o-y to $9.1 million, while EBITDA rose 346% y-o-y to $12.1 million, from a $4.9 million loss in FY2019.
Correspondingly, the group achieved a turnaround in net profit for FY2020 to $8.6 million, from a $7.4 million loss in FY2019.
Other operating income rose 4% y-o-y to $1.9 million due to the one-off proceeds Oceanus received for a long-outstanding balance arising from a prior sale of a processing facility in China following the winning of a court case.
As at Dec 31, 2020, the group is in a positive net asset position of $28.5 million, representing a 21.7% y-o-y increase from the year before.
Earnings per share (EPS) for the 4QFY2020 and FY2020 stood at 0.03 cent per share and 0.04 cent per share respectively.
Cash and cash equivalents as at end-December stood at $11.5 million.
No dividend has been declared for the FY2020.
“We are encouraged to have crossed this significant milestone, achieving our highest ever turnover since listing way back in 2008. More importantly, it is heartening to see the fruits of our labour through achieving a positive turnaround in net income growth in this financial year,” says CEO Peter Koh.
““This is a testament to the success of our strategic diversification beyond aquaculture since 2018, and our business transformation. Through our four synergistic growth pillars, Aquaculture, Distribution, Services and Innovation, we are able to reap crossselling opportunities. These highly scalable business segments also create new revenue streams along the aquaculture and FMCG value chain, allowing us to enjoy economies of scale with long-term revenue visibility.”
“Overall, our agility has allowed us to react swiftly and effectively in response to unprecedented crisis. This includes our business transformation to embrace contract farming, leasing of aquaculture farm plots to third-party operators, and investing in deep tech indoor farming,” he adds.
Looking ahead, Koh says Oceanus will focus on applying “deep tech strategies” to supplement its businesses, which will create additional growth for the group and enhancing food security.
“Notably, in 2020, we have made good progress in the development of IPs and the building up of a good network of key partners for our next growth phase. Through partnerships with Hainan Raffles Group and Universal Aquaculture, we have set up the world’s first Oceanus FoodTech Hub in Hainan, and separately, invested in a deep tech farm in Singapore,” he says.
Shares in Oceanus closed 0.4 cent lower or 5.3% down at 7.1 cents. The stock reached its highest levels since its listing on 2016 amid Reddit speculation in January.