TIDMAFG
RNS Number : 9440F
Aquatic Foods Group PLC
17 November 2015
Press Release 17 November 2015
Aquatic Foods Group Plc
("Aquatic Foods", the "Company" or the "Group")
Trading Update
Aquatic Foods Group Plc (AIM: AFG), a leading Chinese marine
foods and seafood processor and producer, supplying to export and
local markets, is pleased to provide the following trading update
for the nine months ended 30 September 2015.
Highlights:
-- Unaudited Group revenue for the nine months ended 30
September 2015 up 19.9% to RMB 678.7 million (2014: RMB 565.9
million)
-- Gross margins in Q3 under pressure from challenging market
conditions but full year 2015 expectations remain unchanged
-- Unaudited cash balance at 30 September 2015 RMB 329.5 million
-- Renewed focus on increasing exports and sales to PRC supermarkets
-- Positive progress in relation to acquisition of new facility
-- Group expects to continue to grow through 2016 but at more
modest rates than those experienced over the last few years
-- Significant one year sales contract with Yihe International Corporation
Revenue breakdown by product category
Nine months Nine months GROWTH Year ended
30 September 30 September % 31 December
2015 2014 2014
Unaudited Unaudited Audited
Currency: RMB'000
Fish 478,149 361,257 32.4 586,180
Sea Cucumbers 93,579 90,146 3.8 132,315
Cephalopods 33,043 37,028 (10.8) 44,003
Others 73,894 77,452 (4.6) 93,582
-------- -------------- ------- -------------
Total 678,665 565,883 19.9 856,080
Gross Margin by Product Category
Nine months Nine months Year ended
30 September 30 September 31 December
2015 2014 2014
Unaudited Unaudited Audited
Gross margin
Fish 29% 29% 29%
Sea Cucumbers 39% 42% 44%
Cephalopods 30% 29% 30%
Others 29% 30% 30%
-------------- -------------- -------------
Total 30% 31% 32%
Fish
Sales of fish products have continued as the largest product
category for AFG, representing 71% of sales for the year to 30
September 2015 (2014: 64%).
During the last quarter the Group's product mix has been
impacted by consumer demand changes, reflected in a reduced average
price per kilogram of processed fish. Consequently fish sales have
not increased at the same rate as kilograms processed.
Notwithstanding the above, turnover for fish products for the
nine month period to 30 September 2015 has still increased strongly
at over 32% higher than the same period during the nine months to
30 September 2014.
The Group's top three fish products are mackerel, greenling and
cod.
Sea Cucumbers
Sales of Sea cucumber products have continued to be impacted by
attitudes in China towards the giving of conspicuous high value
gifts. Gross margins for the nine months to 30 September 2015 were
approximately 39%.
Cephalopods
Sales of Cephalopods (principally squid and cuttlefish) for the
nine months to 30 September 2015 were 11% lower as compared to the
prior year period. Gross margins were approximately 30%.
Others
Sales of gift boxes have slowed in the third quarter with sales
down by approximately 13% on the prior year period. This reflects
the Government policy of discouraging corporate gift-giving. Gross
margins have remained broadly steady at approximately 29%.
Market environment and Outlook
While the Group continues to expand its sales in the PRC, the
trading environment has become more challenging reflecting wider
factors in the Chinese economy. Consequently the Group is seeking
to exploit new sales channels by specifically targeting sales to
PRC supermarkets, a more resilient part of the Chinese foods
market, through its distributor partners as well as a focus on
export markets although the latter tend to attract lower
margins.
The Group maintains a strong cash position although working
capital has been impacted by increasing trade debtors as a result
of wider market influences. The Group maintains a strong focus on
cash collection with only a small proportion (<5% by value) of
distributors seeking to extend contractual credit terms.
The Directors expect the current challenging market conditions
to continue over the near term, resulting in a more measured growth
trajectory during 2016 for sales as well as profitability. The
Directors intend to position the Company for renewed growth in
China as well as from export markets where the Group has already
made significant progress through its contract with Yihe
International Corporation, which represents a total value of USD
15.4 million (approximately RMB 99 million: GBP10.1 million)
supplying Yihe with 11 separate seafood products over the course of
one year.
Reflecting the Directors continued confidence in the Group's
fundamental growth prospects, the Group has progressed its
investment plans for a new facility and is currently awaiting final
regulatory consent for its expansion plans from the relevant
regional authorities. The Directors look forward to updating the
market further in connection with these plans.
Li Xianzhi, Chief Executive Officer of Aquatic Foods Group Plc,
said: "The Group has delivered an impressive trading performance
despite the current market conditions. Aquatic Foods plans to
continue building our revenues by focusing our growth strategy on
more resilient sales channels, namely PRC supermarkets and export
markets. The Company will utilise current distributors as well as
investigating new avenues of distribution while increasing efforts
to export products internationally, following Aquatic Food's
successful collaboration with Yihe International Corporation.
Overall the Board is pleased with the resilience and growth
achieved by the Group, given the challenging market conditions we
are currently experiencing through certain channels in China."
* For illustrative purposes the exchange rate as at 31 December
2014 was 1 GBP: 9.6 RMB.
- Ends -
For further information:
Aquatic Foods Group Plc
Sean Lim, Finance Director Tel: +44 (0) 20 7398 7714
www.aquatic-foods.com
SP Angel Corporate Finance LLP
Nominated Adviser and Broker
Stuart Gledhill / David Facey Tel: +44 (0) 20 3470 0470
www.spangel.co.uk
Media enquiries:
Abchurch Communications Limited
Jamie Hooper / James Burman Tel: +44 (0) 20 7398 7719
AquaticFoods@abchurch-group.com www.abchurch-group.com
Notes to Editors:
Aquatic Foods Group is a leading marine foods and seafood
processor and supplier based in China. The Group initially built
its business through focusing on the export market (principally
Japan under the "Kanwa Foods" brand), and subsequently established
the "Zhenhaitang" brand in 2007 in mainland China to take advantage
of the growing market driven by growing disposable income within
the Chinese middle-classes and a more health conscious consumer
base.
The Group benefits from excellent food safety procedures
developed over many years which have helped the Group to build a
strong track record of supplying its products into overseas
markets. This track record has enhanced the perception of the
quality and reliability of the Group's products in China and has
allowed the Group to expand significantly into local markets as
demand for seafood products has increased. In a market that has
seen regular public health scares relating to food safety, the
Group considers that its adherence to these standards to be a key
strength. The Group has obtained the following key standards:
- ISO 9001 Quality Management System certification
- HACCP Food Safety System certification
- BRC certification; and
- Marine Stewardship Council certification
Aquatic Foods works with a network of distributors to
effectively market its products in China. The Group has continued
to grow its distributor relationships and now distributes its
products in 16 provinces, municipalities and autonomous regions in
China through 50 regional distributors. These distributors in turn
sell the Group's products to sub-distributors and retailers,
including supermarket chains and hypermarkets.
Further information can be viewed at www.aquatic-foods.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTFFFSMWFISEIF
(END) Dow Jones Newswires
November 17, 2015 02:01 ET (07:01 GMT)
Aquatic Food (LSE:AFG)
過去 株価チャート
から 11 2024 まで 12 2024
Aquatic Food (LSE:AFG)
過去 株価チャート
から 12 2023 まで 12 2024
