Strong domestic demand for sustainable oysters has seen Angel Seafood (ASX: AS1) post a record revenue of $3.6 million for the half year ending June.
In its half-yearly report released today, the company cited this record revenue was a 46% increase on the previous corresponding period, underpinned by added scale in the business and local demand for its organic Pacific oysters grown at Coffin Bay on South Australia’s remote Eyre Peninsula.
It logged a net profit after tax of $489,000 compared to the $160,000 loss incurred for the same period last year, and a 178% jump in earnings before interest, tax, depreciation and amortisation (EBITDA) to $1.3 million.
A continued investment in stock biomass across Angel’s water leases at Coffin Bay and Cowell resulted in a net cash outflow from operations during the period.
Intended to drive future growth in sales, stock biomass increased 42% on last year’s volume to 532 tonnes, representing 30 million oysters on hand at 30 June and placing the company in a strong position as it heads into the warmer months.
Angel’s liquidity increased to $4.1 million, providing it with the flexibility required to invest in its three-pillar growth strategy aimed at doubling production and increasing profitability.
At the end of the period, the company had a cash balance of $2.5 million.
Angel chief executive officer and founder Zac Halman said he was pleased with the half-year results during a challenging period brought on by the COVID-19 pandemic.
“Sales through the retail channel continued to grow and we saw some good recovery signs in the restaurant channel before the [COVID-19] lockdowns returned,” he said.
“Our record results were facilitated by the availability of stock from our increased scale and biomass which remains stronger than ever, and we are now well-positioned coming into summer when demand is typically high, especially through the festive season.”
Despite the uncertain operating environment, the company is looking forward with a “high level of confidence”.
“Demand for our fresh, premium Pacific oysters is stronger than ever and I am pleased to say that we are seeing early signs of life in the export market, having recommenced some of our sales to Asia this month,” Mr Halman said.
“The results we have been able to produce over the first six months [of the year] have been really pleasing and we look forward to an exciting second half.”