Pioneer Food expects earnings growth

Pioneer Food Group (PFG) on Friday, 4 April 2014, said it expected its adjusted earnings for the half-year ended March to jump between 38% and 52%‚ compared with the prior interim period.

Earnings growth was driven by "value enhancement initiatives and the continued focus on cost reduction and efficiencies"‚ the group said.

"In addition‚ a strong volume performance from the international business resulted in increased profitability‚ aided by rand weakness."

The food and beverage group's share price rallied almost 6.83% to a close of R89.67‚ while competitor Tiger Brands' stock also strengthened‚ trading 1.88% higher at R268 at the close on Friday.

Pioneer said its adjusted headline earnings per share from continuing operations were expected to rise by between 38% and 52%. Nonadjusted headline earnings per share were expected to jump by between 95% and 110%.

The adjusted earnings‚ which better reflect earnings from continuing operations‚ adjust for the effect of Pioneer's 2006 black economic empowerment transaction‚ as well as the treatment of Quantum Foods as a discontinued operation.

Pioneer said revenue growth from continuing operations was in line with the growth reported for the four months to the end of January.