Record oyster sales deliver strong quarterly results for Angel Seafood

smallcaps.com.au
4 min read
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Certified organic and sustainable oyster producer Angel Seafood (ASX: AS1) has delivered the goods for the second time this calendar year, posting record sales of 3.2 million oysters and revenue of $2.5 million for the three months ending 30 June.
Sales for the quarter were up 50% on the previous corresponding period, while revenue was 54% higher, with a marginal increase in the average oyster price.

Cash receipts from customers totalled $2.8 million (up 67% on the previous period). Operating cash expenditure was $2.2 million and comprised stock purchases and costs relating to staffing, production, advertising and marketing, and finance.

Net operating cash flows were positive at $600,000, and the company closed the quarter with a cash balance of $2.5 million and liquidity of $4 million (including undrawn facilities).

Oyster demand

Demand for Angel's oysters from the restaurant sector remained strong during the June quarter before being impacted by COVID-19 lockdowns.

This is while demand from the retail sales channel continued to grow, facilitated by the availability of stock from Angel's increased scale and stock biomass, as well as stock sourced under allied arrangements.

Ongoing investment in stock across Angel's water leases along South Australia's remote Eyre Peninsula saw biomass volumes increase 42% on the previous year to 532 tonnes.

This represents 30 million oysters on hand and positions the company well as the market heads into the warmer months.

Reaping rewards

Angel chief executive officer and founder Zac Halman said the operational investments had started to reap rewards.

"I am pleased that these investments have enabled [us] to grow our sales to match growing demand for our oysters," he said.

"It was great to see a pickup in trade in the…
Imelda Cotton Has Over Years Experience As A Journalist, Communications Professional. She Has Spent The Bulk Of Her Career In The Resources Sector, Having Also Worked Directly With Oil, Gas Majors, As A Journalist Covering A Vast Array Of Asx Listed Companies Within The Resources, Energy, Science, Health Sectors.
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