Pioneer Foods FY adjusted HEPS from continuing operations seen 1%-9% higher

© Rafael Ben-Ari – 123RF.com

The food producer, which houses well-known brands such as Weet-Bix, Bokomo and Liqui-Fruit, said revenue was expected to have grown between 11% and 13%. The revenue excludes Pepsi, biscuits and Maitland Vinegar that the company exited.

The JSE mid-cap company said the effect of the drought on maize and other crops, exponential increase in the wheat import duty, rand volatility and resultant cost push in a weak consumer environment affected its performance.

"Export revenue into the rest of Africa came under pressure amidst severe currency devaluation to the rand, and the deterioration of in-country consumer spending power as a consequence," it added.

Pioneer said the strength of its brand portfolio and a sustained focus on efficiencies provided a cushion to the headwinds.