The company issued a business update, saying for the three months ended May 2009, its headline earnings per share amounted to 48.4 cents after a loss of 34.6 cents for the same period a year ago.
The company referred shareholders to the joint announcement by Sovereign and AFGRI on 15 May regarding the proposed reverse listing of AFGRI's Food Division into Sovereign Foods and the announcements by Country Bird Holdings in May and June regarding the acquisition by Country Bird of shares in Sovereign Foods.
Country Bird's most recent announcement dated 1 June 2009 stated that it had acquired 22.76% of the issued ordinary share capital of Sovereign Foods.
Sovereign said in view of the proposed AFGRI transaction and the Country Bird shareholding, it has had discussions with Country Bird as a shareholder.
"At this stage there are no developments which the Sovereign Foods board of directors deems to be necessary to be brought to the attention of the shareholders of Sovereign Foods," it said.
As a result of these developments, Sovereign's Board considers it prudent to provide shareholders with the most recent information available regarding the Sovereign Foods operations.
Accordingly, a business update in respect of the three months ended May 2009 has been provided, but it is not the intention to report on its operations on a quarterly basis in future, it said.
Revenue for the three month period rose to R283.3 million from R174.3 million and net operating income rose to R22.2 million after a loss of R15.9 million a year ago.
The group said pricing in the first quarter has increased by 27% over the previous comparable period as a result of strong domestic demand and increased international pricing.
Volume growth was exceptionally strong in the three months ended May 2009 with volumes increasing by 28% over the previous comparable period.
The results for the six months ended August 2009 are expected to be released on or about 1 October 2009.
Shareholders were reminded that Sovereign remains involved in negotiations which may have a material effect on its share price and they are advised to continue to exercise caution when dealing in the company's shares until a further announcement is made.
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