Pioneer Food expects high interim earnings

Its earnings per share are expected to be between 164 to 173 cents per share from 2008's 144.9 cents per share - also between 13% and 19% higher.

The group said a prime contributor is the Sasko business, which achieved an improved operating margin for the reporting period with stronger than expected sales, particularly in March 2009.

In addition, the comparative period was negatively affected by the delayed recovery of increased raw material costs as well as the once off commissioning costs to upgrade baking facilities, which are now contributing improved sales revenue.

Indications are that food inflation will moderate towards the end of the year though upward cost pressures are persisting.

A more stable food pricing environment should contribute to an improved performance for the full year.

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