Pioneer Foods earnings up 12% to 456c

Pioneer Food Group reported a 12% rise in its adjusted headline earnings per share to 456c in the year to September‚ compared with figures for last year.

25 Nov 2013

Pioneer Foods recorded growth in earnings of 12% for the year. © puckillustrations - Fotolia.com

Revenue from continuing operations was up 9% to R17.0bn‚ largely due to increased sales prices‚ as volumes across the group's basket increased by only 1%.

Operating profit from continuing operations‚ before items of a capital nature and adjusted for abnormal costs‚ increased by 7% to R1.27bn‚ with an operating margin of 7.5% slightly lower than the 7.6% achieved a year ago.

A final dividend per listed ordinary share of 86c was declared‚ up 23% from last year.

"Significant change is under way at Pioneer Foods to position the organisation more competitively. The organisation has shown resilience by producing a fair set of results in a constrained and highly competitive market environment‚" Pioneer Foods' chief executive Phil Roux said.

In September‚ the company announced its intention to unbundle Quantum Foods and to list it as a separate entity on the JSE next year. The listing would be subject to market conditions and regulatory requirements.

Pioneer Foods said the macroeconomic outlook remained bearish in SA and‚ as a consequence‚ food and beverage categories would remain under pressure and were likely to yield limited growth in real terms.

Source: I-Net Bridge

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