The business of Lucky Star, which is part of Oceana Group, faced supply problems, leading to a 60% decrease in local canning production and a 9% reduction in canned fish sales volume during the reporting period.
Oceana Group reported mixed trading results for the 11 months ending in August 2026, as the Lucky Star business suffered from a lack of fish, putting pressure on sales.
Lucky Star is one of the most well-known canned fish brands in South Africa and constitutes a significant part of Oceana's food business. The brand supplies canned fish and other preserves to consumers across the country.
Lucky Star faces fish shortage
The group stated that the shortage of frozen fish raw materials affected production, causing a 60% drop in local canning volume and a 9% decline in canned fish sales volume.
The group noted: 'Lucky Star Foods demonstrated mixed results for this period, with a strong first half followed by a calmer second half until the end of August. The shortage of frozen fish raw materials limited the availability of canned pilchards and slowed down sales pace.' Furthermore, it was indicated that total sales volume decreased by 5%, driven by the 9% reduction in canned fish volume, as limited stocks prevented the business from fully meeting demand; however, strong meat canning sales partially offset this decline.
The group also reported that 'the raw material shortage reduced local canning volumes by 60%, creating upward pressure on the unit cost of production because fixed production costs were not fully absorbed.' Despite production pressure, Oceana stated that Lucky Star's operating margin benefited from higher net realized sales values, reduced freight and inventory holding costs, improved sales mix, and increased local pilchard catches.
At the group level, Oceana reported that revenue for the 11 months remained at the previous period's level, while operating profit increased. This improvement was supported by better performance from Lucky Star Foods, its fishmeal and fish oil business in the US, and wild catch operations.
Nevertheless, the group continued to face pressure in its African fishmeal and fish oil business, where reduced production and sales volumes led to a significant operating loss.