Pacific oyster producer Angel Seafood Holdings (ASX: AS1) has posted record sales for the September quarter – boding well for ongoing growth as the company hits its peak demand period over the Christmas season.
For the three months ending September 2020, Angel Seafood sold 2.7 million oysters, which was an all-time record and 78% higher than the previous September 2019 quarter.
Angel Seafood attributed the increased sales to mounting demand for its Coffin Bay oysters from retail channels and its multi-bay strategy.
Earlier this year, Angel Seafood fast-tracked its plans to build retail sales following restaurant closures due to COVID-19.
Record sales led to positive operating cash flow of $408,000.
“Delivering another record result during these uncertain times is a testament to the tremendous effort by the team, as well as the quality of our product and the strong relationships we have in place with our customers,” Angel founder and chief executive officer Zac Halman said.
“We continue to receive positive feedback from our customers and are progressing initiatives to further increase retail penetration.”
As part of the company’s strategy to boost retail penetration, Mr Halman said the company would bolster its existing relationships and evaluate marketing initiatives with large retailers.
“We are extremely excited about the growth opportunities that this channel provides us,” Mr Halman added.
“The past quarter was a very successful period for Angel despite some states continuing to face tough restrictions on gatherings and restaurant trade. We have made huge progress with our retail offering and we continue to focus on that as we enter the second quarter. Pleasingly, we have seen the strong momentum in retail continue over the past few weeks.”
Poised to meet peak demand and break new records
Angel Seafood describes itself as the largest sustainable and organic certified pacific oyster producer in the Southern Hemisphere.
Based in South Australia, the company prides itself on leading farming practices and optimising assets while maintaining premium product quality.
Currently, Angel Seafood has holding capacity of over 20 million oysters, with capacity to condition over 10 million oysters for sale annually.
“Our game-changing and industry leading multi-bay strategy enables us to produce high-quality oysters at scale from spat to maturity, mitigating production risk and creating a sustainable operating environment that allows us to be an agile operation that can quickly pivot to adjust to consumer needs and demands,” Mr Halman said.
The company noted consumers were becoming “increasingly accustomed” to purchasing oysters from their local retailer.
With peak demand season coming up, retail channels growing and restaurants reopening, Angel Seafood claims it is poised to meet demand. It has 22 million graded oysters in stock with a biomass of 256 tonnes, which is up 31% on the previous September quarter’s levels.
Additionally, Angel Seafood has increased spat purchases above the natural replacement rate to ensure it has a steady pipeline of biological stock to cater to future growth.