Sea Harvest Group Limited. JSE: SHG

Sea Harvest shares

Background of Sea Harvest

  • The Sea Harvest Group is a leading, internationally recognised fishing and food business with operations in South Africa and Australia, servicing retail and foodservice customers in 22 countries. Established in 1964 in Saldanha Bay on the Atlantic West Coast of South Africa by Spanish-owned company, Pescanova, who joined forces with Southern Sea Fishing Enterprises and Imperial Cold Storage (ICS). Today, Sea Harvest has become a household brand and market leader in the fish category. Sea Harvest Corporation is a Level 2 Broad-Based Black Economic Empowerment (B-BBEE) contributor and one of the largest empowered companies in its sector. The majority shareholder is Brimstone Investment Corporation Limited, while the other shareholders are Sea Harvest management and staff. Brimstone Investments, a black owned Cape-based investment consortium, first invested in Sea Harvest in 1998 and acquired control in 2009.The principal business is the fishing of Cape Hake and Shark Bay prawns, processing of the catch into frozen and chilled seafood, and the marketing of these products, locally and internationally. Sea Harvest owns and operates a fleet of 18 vessels which include single and twin fresh fish trawlers, factory freezer trawlers, and access to in-shore trawlers which catch and process Cape Hake, as well as other by-catch species such as kingklip and monk.

  • In Australia, the Group has an additional 11 prawn vessels through its subsidiary Mareterram which catch and process prawns, scallops, crabs and related by-catch species. Sea Harvest’s fresh fish processing plants in Saldanha and Mossel Bay are built on deep-water quays. This enables the trawlers to tie up alongside and speedily off-load into the factory, essentially becoming part of the production line. Sea Harvest processes and packs over 100 products for the local and international markets between its factory freezer vessels, and its two processing facilities in Saldanha Bay and Mossel Bay The principal business of the Group is fishing of MSC-certified Cape hake and Shark Bay tiger and king prawns, processing of the catch into frozen and chilled seafood, and the marketing of these products, locally and internationally. The Group is one of the largest Fishing Rights holders in the history of the South African Cape hake industry with 28% of the hake TAC equating to 41 676 tons, and 56% of the prawn licences in Shark Bay, Western Australia.

Sea Harvest Shares Growth Driver

  • In 2016 alone the company’s shareholders invested close to ZAR 600 million (€41.1 million/$44.3 million) in capital investment and growth which has lead to Sea Harvest becoming one of the largest vertically integrated black-owned fishing companies in the country. During 2016, the company’s portfolio acquired 19.9 percent of Mareterram Limited, an Australian vertically integrated agri-business, listed on the Australian Stock Exchange. Sea Harvest further increased its stake in Mareterram to 56 percent, a controlling interest, in July this year. Further investments made by the business over the past 24 months include a ZAR 300 million (€20.5 million/$22.2 million) capital outlay in vessels and infrastructure to ensure it continues to be efficient, and sustainable.

  • At a shareholder level, Brimstone Investment Corporation invested ZAR 250 million (€17.1 million/$18.5 million) in acquiring Kagiso Tiso Holding’s share of Sea Harvest, allowing it to increase its controlling share to 85 percent. This acquisition consolidated the company’s position as one of the most transformed fishing companies in the industry, now being 91 percent black-owned. “Our commitment to transformation and job creation in the fishing industry will continue into the future,” said Fred Robertson, Chairman of Sea Harvest and Brimstone. In 2016, positive revenue growth can be seen in most markets, particularly in Europe, the company said. “We continue to experience positive growth in all markets as the demand for sustainably caught hake grows, the opportunities for us to diversify our currency are there as we seek to make Cape Hake the protein of choice the world over,” said Konrad Geldenhuys, sales and marketing director at Sea Harvest. After the difficulties faced by the business post the 2008 global financial and southern European sovereign debt crises the business has seen a turnaround where its current compound annual growth rate (CAGR) on revenue has increased by over 10 percent since 2011, and its earnings before interest and tax (EBIT) has increased by over 60 percent since 2014. Sea Harvest is well poised for organic and acquisitive growth, the company said.

Sea Harvest Group Investor Tip

  • Brimstone’s share price shot up by almost 10%, as demand for Sea Harvest’s initial public offering (IPO) increased, resulting in R1.329bn being raised. Brimstone Investment Corporation – which owns Sea Harvest – announced late on Friday that a strong buy demand for Sea Harvest shares resulted in the entity increasing the purchase size of the share offer. The amount was raised with the issuance of 106 333 334 shares at a price of R12.50 per share, it said. The settlement date is at the start of trade on Thursday, when the stocks will be listed for sale on the main board of the Johannesburg Stock Exchange (JSE). This subsidiary plans to expand to China, according to Brimstone CEO Mustaq Brey. Brimstone, the majority shareholder of Sea Harvest, with a stake of 85%, reported a 22% performance increase in its revenue and a 147% increase in operating profit for the financial year ended 31 December 2016.

  • The Sea Harvest Group, whose main business is fishing hake and prawns and processing the catch into frozen and chilled seafood, will sell about 92 million Sea Harvest shares, or a 38.7% stake, at between R12 and R14.50 Sea Harvest share price each. The company will set the final initial public offering price on March 20 and is due to make its lived online debut on the Johannesburg Stock Exchange (JSE) on March 23 The company, which has a 36.7% share of South Africa’s frozen seafood market, packages for retail and food service customers in Spain, Italy, Australia, Germany, Portugal, France and the Netherlands. Sea Harvest’s net profit more than tripled to R131 million for the year ended December 31 2016 on sales of almost R2 billion, according to the group’s data stats.

Sea Harvest Major Shareholders

  • Sector

    Consumer Staples

  • Industry

    Food Beverage and Tobacco

How to buy Sea Harvest Group Holdings Shares

  • Sea Harvest Holdings : How to buy Sea Harvest Holdings Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Sea Harvest or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Sea Harvest and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Sea Harvest Holdings shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
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