Oceana holds revenue steady as Lucky Star offsets fish oil slump

Oceana Group has reported consistent revenue for the five months ended 22 February 2026. A standout performance from its iconic Lucky Star brand, along with improved horse mackerel results, successfully balanced a sharp downturn in the global fish oil market.

While the group maintained its topline, operating profit for the period was slightly lower, a result management attributed to significant headwinds in the industrial fish segment.

Lucky Star defies consumer pressure

Lucky Star Foods remains the group’s primary defensive pillar, delivering a 6.7% increase in sales volumes despite a constrained domestic consumer environment.

High demand for canned fish was accompanied by a strong showing from non-fish products, which now account for 9% of the division’s total volume.

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Although local canned fish production plummeted by 77% due to global frozen fish supply shortages, Lucky Star successfully improved its operating margins. This margin expansion was driven by a stronger rand, lower freight costs, and a higher volume of locally caught pilchards.

Fish oil and global market headwinds

The group’s fishmeal and fish oil operations faced a much tougher measurement period.

In the United States, average realised fish oil prices crashed by 45% year on year, while South African production volumes were slashed by 80% due to poor industrial fish landings and the lack of an anchovy quota.

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These factors led to a higher operating loss in the African division, as unit costs surged under the weight of fixed-cost under-recovery.

Fleet renewal and Wild Caught Seafood

Performance in the Wild Caught Seafood segment was mixed but overall enhanced by horse mackerel. In Namibia, the horse mackerel business delivered a “significantly improved performance”, fuelled by high US dollar sales prices and lower fuel costs.

Conversely, the hake business saw an 8% drop in catch volumes following the scheduled dry docking of the fleet’s flagship, Beatrice Marine.

Oceana is actively modernising its fleet, confirming the acquisition of a new dual-purpose vessel scheduled for delivery in the third quarter of 2026.

The group is also continuing to seek a buyer for the Desert Diamond, which remains classified as an asset held for sale. To manage ongoing volatility, the segment has hedged 70% of its forecast fuel requirements through the end of the financial year.

Oceana is expected to release its finalised interim results on 21 May 2026.