Angel Seafood’s oyster sales affected by coronavirus
Angel Seafood’s Eyre Peninsula oyster farms are continuing to operate through coronavirus, but sales have been affected.
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Angel Seafood has issued a trading update to the ASX in the wake of coronavirus, saying while farming operations are unaffected, sales have taken a hit.
The market conditions have led Angel to withdraw its FY20 sales guidance.
In the update, the company outlined how reduced foot traffic in food markets and limited patronage in restaurants had adversely affected oyster sales. Exports have also been grounded due to disruptions in the airfreight industry.
Oyster sales are continuing into retail markets and sales for the quarter are currently at 80 per cent of internal forecasts.
In a bid to offset the adverse sales impact, all of Angel’s non-essential operating expenses have been stopped to preserve cash.
With farming operations still continuing, Angel currently holds stock in excess of 25 million oysters.
Angel chief executive Zac Halman said the company would be closely monitoring the coronavirus situation and responding as required to ensure the health and safety of its team. “We remain completely focused on best positioning Angel for the long term,” Mr Halman said.
“We are seeing larger oyster sizes becoming available for sale, which we expect to continue selling. We remain confident that once consumer demand returns to normal levels and access to export markets reopens, Angel will be well-positioned for a return to growth.”
Angel Seafood is trading at 9.5c.