The Singapore listed divisions of Hong Kong-based Pacific Andes reported a decline in gross profit and turnover for the 2012 financial year, ending Sept. 28.

Pacific Andes Resource Development (PARD) ? which includes the results of the company?s fishing arm, China Fishery Group, also listed in Singapore ? reported turnover of HKD 8.70 billion ($1.12 bn), down 9.2% year-on-year.

As a result of this slide in turnover, the company reported gross profit of HKD 1.40bn, down 25.8% y-o-y, with its gross profit margin at 16.13%, down from 19.74% the previous year.

Revenue from its frozen fish supply chain management division, which accounted for 50.3% of total revenue, decreased by 10.2% to HKD 4.37bn, mainly attributed to the lower average selling prices of products.

Pacific Andes is the largest supplier of frozen fish fillets, derived from pollock and other whitefish, in the world.

Revenue from the fishery and fish supply division, China Fishery, which accounted for 49.7% of total revenue, decreased by 8.1% to HKD 4.32bn.

The group?s newly established fishing operations in Namibia contributed positively to the performance of its fleet, the company said, not giving any specific numbers for this operation.

Revenue from the Peruvian fishmeal operations, which have been bolstered by the acquisition of Copeinca, decreased by 7.5% to HKD 1.29bn, largely as a result of the significant reduction in total allowable catch (TAC) in the 2012 second fishing season in the Peruvian anchovy fishery.

The effect of higher average selling prices of fishmeal/fish oil and contribution of revenue from Copeinca for one month (HKD245.7 million) reduced this impact, the company said.

Revenue from its contract supply business, the name the company gives for its Russian pollock sourcing operations, decreased by 3.6% to HKD 2.81bn, due mainly to lower average prices of various products.

Revenue from the China Fishery fleet decreased by 44% to HKD 217.9m, due ?primarily to the strategic decision of not operating the fishing fleet in the South Pacific Ocean during the year under review?, the company said.

Largely because of a 193.4% y-o-y increase in ?other operating income?, the company?s pre-tax profit actually increased, by 7.2% y-o-y, to HKD 976.67m.

Cashflow for the year was strong, with the company generating HKD 4.17bn from operating activities, compared to a loss of HKD 1.04bn for the prior year.

However, net cash used in investing activities was a negative figure of HKD 7.04bn, compared to a negative figure of HKD 971.13m, with HKD 5.76bn used on acquisitions, presumably Copeinca.

For the year ahead, ?the group will focus on the creation and realization of synergies and cost savings from Copeinca?, said Ng Joo Siang, executive director and chairman.

?The Peruvian fishmeal operation is our engine for growth. The substantial improvement in TAC for the current and upcoming fishing seasons certainly will add an extra boost to this engine,? said Ng.

With a anchovy biomass level estimated at between 10.8m metric tons and 12.1m metric tons, the Peruvian Government has increased the TAC for the second fishing season (from November 2013 to January 2014) to 2.3 million, 2.8 times higher compared to the same fishing season last year.

?While the fishery and fish supply division is well positioned as our growth engine, the frozen fish supply chain management division provides the group with stable returns,? said Ng.

In addition, the group has diversified its business mix with its investment in Australia?s largest salmon farming company, Tassal Group.

?Tassal continued to provide positive contributions to the Group in FY2013. With our three strategic business pillars in place, PARD is on the right path to strengthen its position as a leading global supplier of high quality fish products,? said Ng.

The group will retain Copeinca?s listing status on Oslo Bors in this period when it is considering various strategic options for improving the Group?s organizational and capital structures, the company said.