Lucky Star has seen mixed results in the last year, as declining sales and material shortages weighed on the iconic South African company.<\/p>\n\n\n\n
The brand’s owner, Oceana Group, said Lucky Star had seen mixed results in the last 11 months, with the first half of the year being positive.<\/p>\n\n\n\n
Following this, Lucky Star struggled with shortages in frozen fish products and canned pilchards, leading to decreased sales.<\/p>\n\n\n\n
Lucky Star is a perennial winner at major South African consumer awards, often winning top spots in rankings such as AskAfrika Icon Brands Awards and the Sunday Times Top Brand Awards.<\/p>\n\n\n\n
Oceana said total sales volumes for Lucky Star declined by 5% in the last 11 months, driven by a 9% decrease in canned fish volumes.<\/p>\n\n\n\n
“Lucky Star foods delivered mixed results for the period, with a strong first half followed by a subdued second half through to the end of August,” Oceana Group said.<\/p>\n\n\n\n
“Shortages of frozen fish raw material constrained canned pilchard availability and slowed sales momentum.”<\/p>\n\n\n\n
The shortage of raw materials also placed pressure on Lucky Star’s local canning operations, with production volumes in this sector declining by roughly 60%.<\/p>\n\n\n\n
This put further financial strain on the company, as decreased production could not cover fixed manufacturing costs.<\/p>\n\n\n\n
“Raw material shortages also reduced local canning production volumes by 60%, placing upward pressure on per-unit production costs due to fixed production costs not being fully absorbed,” Oceana Group said.<\/p>\n\n\n\n
“Despite this pressure, operating margins benefited from higher net realised sales values, lower freight and inventory holding costs, a better sales mix and increased volumes of locally caught pilchards.”<\/p>\n\n\n\n
The material shortages did, however, lead to Lucky Star having significantly lower inventory volumes than the previous trading period.<\/p>\n\n\n\n
“Inventory volumes closed significantly lower than the prior period, primarily as a result of the constrained fish supply environment.”<\/p>\n\n\n\n
Oceana Group said its overall revenue was in line with the previous financial year, and its operating profit had increased.<\/p>\n\n\n\n
It said that the higher profit came from improvements in Lucky Star, wild-caught seafood, and its US fishmeal and fish oil operations.<\/p>\n\n\n\n
While these segments delivered improved performances, Oceana Group said its success was offset by its fishmeal and fish oil operations in Africa.<\/p>\n\n\n\n
It said this segment had struggled as “lower production and sales volumes resulted in a significant operating loss.”<\/p>\n\n\n\n
“Production volumes declined by 73%, due to a combination of a decline in industrial fish landings and reduced pilchard trimmings following lower cannery production,” the company said.<\/p>\n\n\n\n
While the company increased prices for its products in this segment, it was not enough to prevent its operating loss from widening compared with the prior period.<\/p>\n\n\n\n
Oceana Group said it expects to release its full financial results for the last financial year by 26 November 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"
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