Select Page

Etosha Fishing launches new EFUTA products

Etosha Fishing launches new EFUTA products

Etosha Fishing this week celebrated the launch of four new products under its own, home-grown EFUTA brand.

These include canned EFUTA Maasbanker in curry sauce, canned EFUTA Maasbanker mince in tomato sauce as well as a new 20kg whole frozen horse mackerel box product. In addition, the company for the first time will be canning imported pilchards under its new EFUTA Pilchard brand. Well-known as the Namibian home of the revered Lucky Star brand, Etosha Fishing is already canning imported pilchards for Lucky Star and Glenryck South Africa.

At the same occasion officiated by the Minister of Fisheries and Marine Resource, Hon Bernard Esau, the company celebrated the reflagging its refrigerated seawater vessel, the Iona as a 100% Namibian-owned vessel. Etosha Fishing has made a substantial investment in the conversion of the vessel to be able to land wet horse mackerel for land-based processing in line with the company’s horse mackerel quota.

In 2013 Etosha Fishing became the first fishing company to can locally caught horse mackerel under its then newly established EFUTA Maasbanker brand. Since the product’s introduction to the local retail market in 2014 sales have increased nearly five-fold with a total of 4.7 million cans sold in 2016.

EFUTA Maasbanker was originally born out of a joint venture agreement between Etosha Fishing and Erongo Marine Enterprises in November 2013, which resulted in the initial canning of 200 metric tonnes of locally caught horse mackerel, yielding a total of 13,000 trays, or just more than 150,000 cans.

The new value addition venture was in direct response to an on-going appeal by the Namibian Fisheries Ministry for employment creation and value addition in the horse mackerel sector, which is in line with the Government’s NDP5 and Vision 2030 policy framework. The venture also allowed for a more sustainable fisheries operation with secure, long term employment for more Namibians.

“The project was driven by Minister Esau’s vision to put Namibia’s most abundant fish resource in a can, offering the nation an affordable, nutritious meal from the sea delivered in robust packaging that has a long shelf life. But to can horse mackerel and think that your product will take a major share of the market is nothing short of ambitious. We had to ensure that we introduce a quality product,” said Greeff in a statement. He highlighted that EFUTA Maasbanker was the first Namibian canned product to receive the Namibian Standards Institution’s (NSI) Standard Mark of Conformity product endorsement. It is also Halaal certified and carries the Team Namibia product mark.

“Exceptionally low in cost, high in protein and especially rich in Omega 3 fatty acids, even today EFUTA Maasbanker is the most affordable, nutritious and best quality meal money can buy,” Greeff noted.

Since Efuta Maasbanker’s introduction, Etosha Fishing has responded to market research and feedback to optimise sales. The product was initially launched in three flavours, namely tomato sauce, chilli and salt water – the latter being discontinued in recent years due to poor sales. In 2015 the smaller 155g jitney can was introduced.

“As you well know, the past years have not been plain sailing in the pelagic fishing industry due to a dwindling pilchard resource, which has been the mainstay of Etosha Fishing’s business. However, we did not allow these challenges to put our business on hold. We remained committed to aggressively tackle our country’s development plans in support of value addition, job creation and poverty reduction to ensure sustained economic growth at home,” Etosha Fishing Board Chairperson Johnny Nekwaya said in a statement at the same event.

Against the backdrop of a dwindling pelagic resource in recent years and the subsequent moratorium placed on pilchard catches, Etosha Fishing has imported in excess of 50,000 metric tons of frozen pilchards for processing on local soil since 2010 in order to sustain business. The company is also in final negotiations to secure contracts to continue canning pilchards for Lucky Star and Glenryck South Africa until the end of 2019.

“We cannot allow Namibia’s only remaining cannery to close its doors. We had to devise various plans and business strategies to ensure that our cannery remains operational, even if it meant we only operate at a break-even level. If we had to close down our cannery as a result of the moratorium on pilchard catches, it would spell the end of Namibia’s pilchard industry. As you know Etosha Fishing’s cannery is the only remaining cannery in Namibia. Restarting the factory once our pilchard resource has recovered would be too costly,” Greeff noted.

He added that the company is extremely proud of the fact that despite the many challenges, it has managed to not only diversify its EFUTA Maasbanker product range, but also to add its own pilchard product to the EFUTA brand.


Caption: Pieter Greeff, Etosha Fishing Board Chairperson Johnny Nekwaya with the Minister of Fisheries and Marine Resource, Hon Bernard Esau.


About The Author

Sanlam 2018 Annual Results

7 March 2019

 

Sanlam’s 2018 annual results provides testimony to its resilience amid challenging operating conditions and negative investment markets

Sanlam today announced its operational results for the 12 months ended 31 December 2018. The Group made significant progress in strategic execution during 2018. This included the acquisition of the remaining 53% stake in SAHAM Finances, the largest transaction concluded in the Group’s 100-year history, and the approval by Sanlam shareholders of a package of Broad-based Black Economic Empowerment (B-BBEE) transactions that will position the Group well for accelerated growth in its South African home market.

Operational results for 2018 included 14% growth in the value of new life insurance business (VNB) on a consistent economic basis and more than R2 billion in positive experience variances, testimony to Sanlam’s resilience in difficult times.

The Group relies on its federal operating model and diversified profile in dealing with the challenging operating environment, negative investment markets and volatile currencies. Management continues to focus on growing existing operations and extracting value from recent corporate transactions to drive enhanced future growth.

The negative investment market returns and higher interest rates in a number of markets where the Group operates had a negative impact on growth in operating earnings and some other key performance indicators. This was aggravated by weak economic growth in South Africa and Namibia and internal currency devaluations in Angola, Nigeria and Zimbabwe.

Substantial growth in Santam’s operating earnings (net result from financial services) and satisfactory growth by Sanlam Emerging Markets (SEM) and Sanlam Corporate offset softer contributions from Sanlam Personal Finance (SPF) and Sanlam Investment Group (SIG).

Key features of the 2018 annual results include:

Net result from financial services increased by 4% compared to the same period in 2017;

Net value of new covered business up 8% to R2 billion (up 14% on a consistent economic basis);

Net fund inflows of R42 billion compared to R37 billion in 2017;

Adjusted Return on Group Equity Value per share of 19.4% exceeded the target of 13.0%; and

Dividend per share of 312 cents, up 8%.

Sanlam Group Chief Executive Officer, Mr Ian Kirk said: “We are satisfied with our performance in a challenging operating environment. We will continue to focus on managing operations prudently and diligently executing on our strategy to deliver sustainable value to all our stakeholders. The integration of SAHAM Finances is progressing well. In addition, Sanlam shareholders approved the package of B-BBEE transactions, including an equity raising, at the extraordinary general meeting held on 12 December 2018. Our plan to implement these transactions this year remains on track.”

Sanlam Personal Finance (SPF) net result from financial services declined by 5%, largely due to the impact of new growth initiatives and dampened market conditions. Excluding the new initiatives, SPF’s contribution was 1% down on 2017 due to the major impact that the weak equity market performance in South Africa had on fund-based fee income.

SPF’s new business sales increased by 4%, an overall satisfactory result under challenging conditions. Sanlam Sky’s new business increased by an exceptional 71%. Strong growth of 13% in the traditional individual life channel was augmented by the Capitec Bank credit life new business recognised in the first half of 2018, and strong demand for the new Capitec Bank funeral product. The Recurring premium and Strategic Business Development business units also achieved strong growth of 20%, supported by the acquisition of BrightRock in 2017. Glacier new business grew marginally by 1%. Primary sales onto the Linked Investment Service Provider (LISP) platform improved by 5%, an acceptable result given the pressure on investor confidence in the mass affluent market. This was however, offset by lower sales of wrap funds and traditional life products.

The strong growth in new business volumes at Sanlam Sky had a major positive effect on SPF’s VNB growth, which increased by 7% (14% on a comparable basis).

Sanlam Emerging Markets (SEM) grew its net result from financial services by 14%. Excluding the impact of corporate activity, earnings were marginally up on 2017 (up 8% excluding the increased new business strain).

New business volumes at SEM increased by 20%. Namibia performed well, increasing new business volumes by 22% despite weak economic conditions. Both life and investment new business grew strongly. Botswana underperformed with the main detractor from new business growth being the investment line of business, which declined by 24%. This line of business is historically more volatile in nature.

The new business growth in the Rest of Africa portfolio was 68% largely due to corporate activity relating to SAHAM Finances, with the East Africa portfolio underperforming.

The Indian insurance businesses continued to perform well, achieving double-digit growth in both life and general insurance in local currency. The Malaysian businesses are finding some traction after a period of underperformance, increasing their overall new business contribution by 3%. New business production is not yet meeting expectations, but the mix of business improved at both businesses.

SEM’s VNB declined by 3% (up 6% on a consistent economic basis and excluding corporate activity). The relatively low growth on a comparable basis is largely attributable to the new business underperformance in East Africa.

Sanlam Investment Group’s (SIG) overall net result from financial services declined by 6%, attributable to lower performance fees at the third party asset manager in South Africa, administration costs incurred for system upgrades in the wealth management business and lower earnings from equity-backed financing transactions at Sanlam Specialised Finance. The other businesses did well to grow earnings, despite the pressure on funds under management due to lower investment markets.

New business volumes declined by 13% mainly due to market volatility and low investor confidence in South Africa. Institutional new inflows remained weak for the full year, while retail inflows also slowed down significantly after a more positive start to the year. The international businesses, UK, attracted strong new inflows (up 57%).

Sanlam Corporate’s net result from financial services increased by 4%, with the muted growth caused by a continuation of high group risk claims experience. Mortality and disability claims experience weakened further in the second half of the year, which is likely to require more rerating of premiums in 2019. The administration units turned profitable in 2018, a major achievement. The healthcare businesses reported satisfactory double-digit growth in earnings, while the Absa Consultants and Actuaries business made a pleasing contribution of R39 million.

New business volumes in life insurance more than doubled, reflecting an exceptional performance. Single premiums grew by 109%, while recurring premiums increased by a particularly satisfactory 56%.

The good growth in recurring and single premium business, combined with modelling improvements, supported a 64% (71% on a comparable economic basis) increase in the cluster’s VNB contribution.

Following a year of major catastrophe events in 2017, Santam experienced a relatively benign claims environment in 2018. Combined with acceptable growth in net earned premiums, it contributed to a 37% increase in gross result from financial services (41% after tax and non-controlling interest). The conventional insurance book achieved an underwriting margin of 9% in 2018 (6% in 2017).

As at 31 December 2018, discretionary capital amounted to a negative R3.7 billion before allowance for the planned B-BBEE share issuance. A number of capital management actions during 2018 affected the balance of available discretionary capital, including the US$1 billion (R13 billion) SAHAM Finances transaction. Cash proceeds from the B-BBEE share issuance will restore the discretionary capital portfolio to between R1 billion and R1.5 billion depending on the final issue price within the R74 to R86 price range approved by shareholders.

Looking forward, the Group said economic growth in South Africa would likely remain weak in the short to medium term future, and would continue to impact efforts to accelerate organic growth. The outlook for economic growth in other regions where the Group operates is more promising. Recent acquisitions such as the SAHAM transaction should also support operational performance going forward.

“We remain focused on executing our strategy. We are confident that we have the calibre of management and staff to prudently navigate the anticipated challenges going forward,” Mr Kirk concluded.

Details of the results for the 12 months ended 31 December 2018 are available at www.sanlam.com.