Lucky Star owner Oceana has warned shareholders to expect a more than 40% decline in earnings for the second half of its 2025 financial year, further deepening investor unease.
The group attributed the earnings slide primarily to Daybrook’s strong performance in the previous year, which had been buoyed by record fish oil prices. In the latest period, fish oil prices normalised after a recovery in Peruvian production, dragging down earnings, it said.
“The period’s lower earnings are partially offset by the improved performance in other segments. Lucky Star foods delivered solid results, supported by steady consumer demand, increased local production volumes and improved operational efficiencies. The Wild Caught Seafood segment benefited from improved hake catches during the second quarter, combined with strong pricing,” the group said.
According to Iress data, Oceana’s share price has fallen 22% over the past year and 14% in the past six months, reflecting mounting concerns about operational headwinds and ongoing internal governance challenges. This is a company battling not just market headwinds, but structural cracks in leadership continuity, talent depth and governance credibility.
Since 2022, Oceana has been on a governance rollercoaster: a whistle-blower triggered forensic probe, the resignation of former CEO Imraan Soomra, the suspension and eventual dismissal of CFO Hajra Karrim, and a repeated delay in financial results publication. Though the leadership team has since been stabilised, the aftershocks remain.
CEO Neville Brink, now past official retirement age, has had his contract extended twice. The board is ageing, with several members nearing 70, prompting a policy change that bends King IV recommendations by extending director tenure to 12 years.
While Oceana has launched internal leadership development initiatives, they may not be fast enough to address the critical skills shortage already hurting operational momentum. The company itself previously acknowledged that its talent pool is not sufficient to support future growth, a stark admission for a top 100 JSE-listed firm.
Despite the downbeat earnings forecast, Oceana’s shares traded at R59.93 at lunchtime on Friday, up 2.01% from the market opening price of R58.65. The group is expected to release its full results on June 9.
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