Sapmer : 2016 Results

Reunion Island, 30thMarch 2017 - 8:30am (Paris Time)

"In line with the first semester, SAPMER confirms its progress during the second semester, generating €129.5m of Revenues and an EBITDA of €30.0m in 2016.

SAPMER team and crew continue to work towards the constant improvement of their activities to be sustainable and profitable through the cycles, that are inherent to the fishing sector.

SAPMER, who will celebrate its 70thanniversary in 2017, starts this year still driven by the same pioneering spirit and eager to continue developing new perspectives for its seafood products, 100% natural, with exceptional flavours" comments Adrien de Chomereau, CEO.

SAPMER board of directors, who met on March 28th, 2017, reviewed and approved the financial statements for the year ended 2016. The audit procedures of the consolidated financial statements have been completed. The audit report is being issued.

Revenues for the year amounted to €129.5m, of which €63.8m in the second half. Almost all the rock lobster sales being recorded in the first half, it was the toothfish, whole tuna and processed tuna activities which contributed to the increase in revenues.

The fishery activity represents 88% of the total revenues for the period, a 53% growth compared to 2015. Except for rock lobster which remained stable, the other two fisheries progressed significantly:

• Toothfish benefited from a quota increase and good fishing conditions. Sales prices remained well oriented and were mainly made in dollars (with a favourable exchange rate effect 1.10 EUR/USD over the period).

• During 2014 and 2015 tuna fishery was penalised by low cycle market prices. In 2016, the tuna activity benefited from the improvement plan initiated early 2015 and from the recovery of whole tuna sales prices compared to 2014 and 2015.

  The processing activity increased in 2016 (+23%), supported by the Japanese loin market during the second half. The sales volume of steaks is stable, the group having chosen to focus on its 100% natural top quality end products by only processing premium quality. This strategy continues to thrive with better selling prices and improved processed yields of noble products.

  Operational profitability

  In a context of improved operating conditions, the cost structure, mainly fixed, leads to a strong increase in operating profitability over the year.

  The second half benefited from the implementation of a number of measures introduced during the year to reduce operating costs, specifically through the reduction of the processed tuna capacity (a provision was recorded accordingly). This ongoing search for savings has offset the increase of the Diesel price observed during the second half and the increase in maintenance costs due to scheduled technical stops of the vessels that took place during the second half of the year.

  After taking into account the financial expenses and taxes, the company generated a net income of €12.1m, or nearly 10% of the revenues.

  Financial structure

  Shareholders' equity reached €48.6m and the financial net debt €77.4m. The gearing shows a strong decrease at 1.6 against 2.1 in 2015.

  The board of directors will propose during the Annual General Meeting, not to pay a dividend this year in order to consolidate the equity and accumulate reserves for the future.

  The legal structure at 31/12/2016 reflects the reorganisation implemented at the end of 2016, which enabled SAPMER to manage two Mauritian and two Seychelles tuna vessels so far managed under SAPMER HOLDING. In parallel SAPMER purchased back shares in MDM processing plant.

  This reorganisation is part of a global strategy which leads SAPMER INVESTISSEMENT, Reunion Island Company, to become SAPMER key shareholder. SAPMER INVESTISSEMENT received a waiver from the AMF (Financial Markets Regulators) allowing it to transfer the shares from SAPMER HOLDING to SAPMER INVESTISSEMENT without having to launch a public offer that could have forced minority shareholders to withdraw from the capital.

  This operation enables SAPMER to assert itself as a flagship of the Reunion Island and of the French fisheries with four toothfish longliners, one pot-lobster vessel, nine tuna purse seiners, one processing plant, a brand and more than a thousand people, shore based and seafarers, who continue to make Sapmer History, of which the first pages were written 70 years ago in Reunion Island.

  SAPMER, committed to quality fishing since 1947, fishes in the waters of the French Southern and Antarctic Lands (TAAF) and the Indian Ocean, and offers amongst the noblest species, natural sea products of premium quality.

  Contacts

  SAPMER

  Communication Department - T : +262 (0) 262 42 55 01 -communication@sapmer.com

  About SAPMER -www.sapmer.com

  SAPMER is the historical deep-sea fishing operator in the waters of the French Southern and Antarctic Territories (TAAF) based on the island of Reunion. Founded in 1947, SAPMER now operates a wholly-owned fleet of four freezer-longliners for Patagonian Toothfish and a Freezer pot Lobster vessel for Rock Lobster and five tuna purse seiners (on board -40°C deep freeze) for its tuna fishing activity (Yellowfin and Skipjack) in the Indian Ocean.

  SAPMER is committed to a responsible and sustainable approach with its Dolphin Safe membership and its Friend of the Sea, IFS/BRS and FAD-Free certifications.

  Positioned on strong valued niche activities, SAPMER is dividing its activities into two categories:

  • A fishing activity which includes Toothfish and Rock Lobster sales fished in the Southern Seas (Economic Zones of the French Southern and Antarctic Territories - TAAF) and whole tuna sales (Yellowfin and Skipjack) fished in the Indian Ocean.

  • A value-enhancing and processing activity (sashimi loins, steaks…) based on a well-managed tuna fishery. SAPMER is listed on Alternext Paris - ISIN code FR0010776617 - ALMER