Angel Seafood sales value down 5 per cent due to growing conditions
Angel Seafood has reported higher sales volume for the last quarter of 2019, but lower value, due to tough growing conditions.
SA Business
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Adverse growing conditions impacted Angel Seafood’s oyster sale value in the last quarter of 2019, down 5 per cent to $1.3 million.
While the sales value was down, volume was up at 1.8 million oysters sold, up 6 per cent on the previous corresponding period.
In an update to the ASX, the company reported that cooler than usual water temperatures and slower growth conditions across the winter months impacted the stock available for sale over the peak sales period in December.
Oysters sold during the period were weighted towards smaller ‘bistro’ sizes, resulting in a lower average price.
With water temperatures returning to normal in Cowell and Coffin Bay, and robust oyster prices underpinned by continued strong demand in the domestic and export markets, Angel remains on track to achieve the lower end of its full year guidance of 8 to 10 million oysters sold.
Cash receipts in the final quarter of 2019 were $1.4 million, up 39 per cent on the previous corresponding period, with Angel achieving a positive operating cash flow of $600,000.
“In light of the suboptimal growing conditions we experienced in Q2, we are pleased with the solid quarter result that we have produced,” Angel chief executive Zac Halman said.
“Demand continues to be strong for Angel oysters, with supply being the main constraint for further growth.
“Pleasingly, the growing conditions have now returned to normal and we have healthy stock levels on hand.”
Summer is a high risk period for disease in oysters, particularly Pacific Oyster Mortality Syndrome, but Angel reports that all testing undertaken by PIRSA has returned negative results.
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Angel still has some stock on hand for sale in January, before shifting its focus into maintenance and husbandry during the spawning season.
“As we enter the seasonally quieter selling season for our oysters, the team will be busy ensuring that the existing stock is kept in prime condition,” Mr Halman said.
“The underlying growth of Angel has been extraordinary over the past 12 months and we are confident that our multi-bay strategy will continue to deliver high quality oysters and strong financial results for years to come.”