The group's revenue increased by 10.7% to R8bn while operating profit was 5.4% higher at R391.4m. The total dividend for the year grew 12.7% to 32c per share.
The group said the results reflected substantial investments in new products and platforms as well as the continuing roll-out of Project Cielo Blu‚ which is now nearing completion.
"Although the financial performance achieved during the first half of the financial year was weaker than expected‚ the recovery achieved in the second six months was pleasing‚" Clover said.
It says factors that enabled the recovery included aggressive cost controls‚ successful selling-price increases to the trade‚ lower spending on new product launches and the selected promotional activities after the selling-price increases.
"During the second half of 2011/12 farm-gate milk prices were increased by about 20% and although partially reduced again early in the 2012/13 year‚ the full year effect of the increased costs could not be fully recovered from the market because of an over-supply of UHT milk. This caused the operating margin to contract‚" it said.
Revenue from the sale of products increased by 10.8% with 5.9% coming from sales volume increases and 4.9% from selling-price inflation increases.
Compared with a year ago‚ revenue from the rendering of services was marginally higher at 4.6%. The previous year benefitted from a specific once-off contract manufacturing arrangement.
During the year‚ Clover was temporarily unable to service a contract manufacturing customer during the relocation of its UHT plant to Port Elizabeth and a contract manufacturing agreement with Foodcorp for Mageu came to an end‚ resulting in a 26.2% reduction in contract manufacturing income.
Income from sales‚ warehousing‚ distribution and related services increased by 11% after the inclusion of the additional Epic Foods‚ Red Bull and Enterprise business.
Looking ahead‚ the group said the successful implementation of Project Cielo Blu will deliver benefits now and over the long-term and will help to mitigate higher input and transportation costs.
New principal business‚ synergies from the Clover Waters and the Real Juice Company acquisitions, along with new product development will further drive revenue as Clover continues to invest and explore areas where it has a competitive advantage‚ both in SA and selected sub-Saharan markets.
"The board is convinced that the investment in infrastructure will provide Clover with a time-to-market advantage. Clover has set itself targets which include volume and market share growth‚ reduced supply chain costs and expansion into the rest of Africa.
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