Industrial fishing company, China Fishery Group, reported a 15.2% year-on-year (y-o-y) increase in net profit after tax to US$15.7 million ($19.9 million) for its first quarter ended 28 December 2013 (1QFY2014).

Revenue increased by 34.4% to US$145.2 million from US$108.1 million due to contributions from Copeinca ASA, an Oslo-listed fishmeal and fish oil business recently acquired by the group. The group is now among the leading fishmeal and fish oil producers in Peru and one of the leading exporters of these products in the world.

Revenue from the Peruvian Fishmeal Operations, which accounted for 50.8% of total revenue, increased by 3.88 times from US$15.1 million to US$73.8 million. The increase was due to Copeinca. During the quarter, average selling prices of fishmeal and fish oil were US$1,388 per ton and US$1,977 per ton respectively, amid a significant increase in the Total Allowable Catch (TAC) of Peruvian Anchovy for the 2013 second fishing season (from November 2013 to January 2014).

Revenue from the Contract Supply Business, which accounted for 40.6% of total revenue, retreated 34.3% from US$89.7 million to US$58.9 million on the back of lower sales volume.

Revenue from the China Fishery fleet, which accounted for the remaining 8.6% of total revenue, increased by 2.79 times to US$12.5 million from US$3.3 million. The increase was due to contributions from fishing operations in Namibia established since 2QFY2013.

In 1QFY2014, gross profit increased by 56.5% to US$44.3 million from US$28.3 million. EBITDA increased by 43.1% to US$63.3 million from US$44.2 million.

Ng Joo Siang, Group Managing Director, said: ?Our strategy of acquisition and consolidation of business in Peru is translating into strong growth for the Group. We will continue to integrate our enlarged fishmeal operations during the second quarter of FY2014 to realise the full benefit from the synergies from our acquisition of Copeinca when the 2014 first season commences in April/May 2014. We are confident of profitability continuing into the next quarter.? 

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