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Taste H1 HEPS seen 40-55% higher
Taste Holdings (TAS) advised on Monday that for the six months ended August 2012‚ it anticipates that it will report growth of between 40% and 55% for both earnings per share and headline earnings per share when compared to a year ago.
In line with the group´s stated vertical integration strategy‚ the food division terminated its distribution contract with its third-party distributor in August 2012. The effect of this is that the food division now has distribution depots in Cape Town and Gauteng‚ with a third depot planned in KwaZulu-Natal in March 2013.
The food division now distributes directly to approximately 450 food outlets‚ which number will increase to over 500 outlets with the commissioning of the KZN depot in 2013.
The food division has entered into a management contract whereby it does not own the vehicles it uses for distribution and the once-off costs associated with establishing the Cape Town and Gauteng distribution depots have been included in the results for the six months ended August 2012.
The company's results are expected to be released during the week commencing 15 October.
Source: I-Net Bridge
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