PACIFIC ANDES resources development FY2010 net profit up 10.5% to HKD1,101 million

Singapore Exchange Mainboard-listed Pacific Andes Resources Development Limited, a leading global frozen fish supplier with an integrated supply chain spanning industrial fishing, global sourcing and ocean transportation, announced its results for the full year ended 28 September 2010, reports www.megafishnet.com with reference to Pacific Andes.

During the period under review, the Group's net profit rose 10.5% to HKD1,101.2 million while net profit attributable to equity holders grew 5.5% to HKD773.1 million. Due to effective cost management and higher operating efficiencies, net profit margin improved from 13.1% to 14.8%.

The higher profitability was driven by a higher contribution from the Group's fishing division, which achieved 11.0% growth in revenue from HK$3,787.3 million to HK$4,203.6 million. The increase was mainly driven by higher selling prices for fishmeal, higher catch volume in the North Pacific trawling operation and the first full year revenue contribution from the South Pacific operation. The fishing division contributed 56.6% of total revenue.

Sales from the frozen fish supply chain management division, which contributed 43.4% of the Group's revenue, softened by 15.5% from HK$3,822.8 million to HK$3,228.7 million. The decrease in revenue was mainly due to lower product selling prices for the Group's major fish products arising from increased total supply from the North Pacific, and lower sales volumes due to a temporary shipment delay in the 4th quarter of the financial year. During the year, the Group continued to pursue cost efficiencies and acquired 2 transportation vessels to lower its cost of transportation and to reduce reliance on third party chartered vessels, thereby increasing delivery efficiency.

Geographically, the PRC remained the Group's most significant market, accounting for HK$5,845.2 million or 78.7% of total revenue, followed by East Asia which accounted for HK$670.8 million or 9.0% of total revenue.

Commenting on the Group's results, Executive Director and Chairman, Mr Ng Joo Siang said: "We are pleased to report another year of improved profit margins. We continue to be positive about the growth potential of both our fishing division and frozen fish SCM division for FY2011. The global demand for fish looks set to continue growing in line with rising affluence, increasing population and rising health consciousness against a backdrop of limited supply. Our acquisitions as well as China Fishery's US$150 million placement to the Carlyle Group during the year have placed us in a better position than ever to capitalise on the positive market opportunities and deliver sustained profitability for the financial year ahead."