Clover pulls back in Nigeria as oil rout takes toll
bdlive.co.za - Mar 2nd 2016, 09:15
Dairy producer Clover cited solid festive season demand in its home market for an uptick in interim earnings, but warned of risks elsewhere in Africa and said it would make no more investments in Nigeria.
"The severe heat wave conditions towards the end of the reporting period resulted in an exceptional performance by the beverage portfolio," the company said.
In the six months to 31 December, headline earnings per share (HEPS) rose 7.1% from a year earlier to 117c, operating profit grew 5.8% to R340.3m, and revenue climbed 7.9% to R5bn.
Clover declared an interim dividend of 24.2c per share, 7.1% higher than the previous year.
The beverage maker said the weakened global economy posed a significant risk to the company’s business in Africa.
"The current financial crisis experienced in Nigeria, which is fuelled by the low oil price, is a further cause of concern, thus the group has decided to withdraw from future investments in Nigeria," it said.
"The group will continue to expand its operations within the Botswana, Namibia, Lesotho, and Swaziland region, and will continue to pursue export opportunities in Africa, where the currency risks can be mitigated.
"The capital previously earmarked for Africa will no longer be spent."From DFM Publishers (Pty) Ltd
Clover, Milco merger puts 657 jobs on the line
17/09/2019 - 10:05
A total of 657 existing jobs will be on the line at Clover Industries in the next two years if the R4.8 billion merger between the JSE-listed dairy company and Israel-based Milco is approved by the Competition Tribunal.
Clover's R4.7bn deal gets Competition Commission nod
22/07/2019 - 10:12
The Competition Commission has approved, with conditions, the R4.8bn sale of branded foods and beverages group Clover Industries to a consortium led by Tel Aviv-based Central Bottling Company, Clover said on Friday.
Clover set to return to profit in year to June
13/05/2019 - 10:15
Clover, which makes dairy-based foods and beverages, says it will return to profit in the year ending June 2019 after making its first annual loss in more than a decade in the prior year.
Brimstone confirms exit from Clover deal
12/04/2019 - 10:01
Brimstone Investments confirmed that it will not be participating in a consortium seeking to acquire SA’s biggest dairy producer Clover, but had agreed on a plan to facilitate its exit.
Sugar tax didn't sweeten the deal for Clover
05/03/2019 - 11:02
The sugar tax may be aimed at reducing consumption, but it ate its way into Clover's profits, the group said on Tuesday.