Clover reports pedestrian growth as operating costs soar
bdlive.co.za - Sep 13th 2016, 09:36
CLOVER Industries on Tuesday reported single-digit growth in full-year net profit as the dairy products and beverages group battled higher operating costs.
The weaker rand pushed up cost inflation in the year to June, which forced the company to raise selling prices on all product categories in April.
The local currency on average weakened against the dollar and the euro in the review period, which increased the cost of plastic packaging material. The group also experienced sharp increases in the cost of ingredients.
"Management embarked on a radical cost efficiency drive to mitigate the impact of higher-than-expected inflationary cost increases across Clover’s value chain," the company said in a statement
"Farm gate milk prices were reduced in August 2015 as the national milk intake was still 7.2% higher than the previous year which yielded unprecedented growth."
The small-cap company, which listed on the JSE in 2010, was also affected by the drought, which increased feed prices due to maize shortages and the scarcity of good quality roughage.
The company posted a 1.8% rise in net profit to R351.9m in the year to June from the year-earlier period. This was off revenue of R9.8bn, which was up 6% on the previous period.
Clover said a key determining factor for the industry’s success would be the rainfall and resultant milk flow in the upcoming spring, hopefully reducing food and beverage input costs and food price inflation.
The company declared a final dividend of 40.75c per share, bringing the total dividend to 65.15c, which was up 16.3c on the year-earlier period. Headline earnings per share rose 8.9% to R1.89.From DFM Publishers (Pty) Ltd
Brands leave R34 bn in lost sales on the e-commerce table - report
22/09/2019 - 13:19
By 2021, over 20-million South Africans will shop online.
Retail sales remain muted with consumers under pressure
20/09/2019 - 14:31
Retail sales for July marginally declined to 2 percent year on year as sales growth continued to reflect a muted demand in South Africa, with consumers’ discretionary income under strain.
Pick n Pay rolls out R4 lifetime reusable bag made from recycled plastic bottles
20/09/2019 - 14:14
Pick n Pay is rolling out its new budget green People n Planet reusable bag nationally after a successful trial with customers earlier this year. The bag is expected to be in all stores by mid-October.
Zara launches online store in South Africa
19/09/2019 - 11:58
Zara has launched its online sales in SA through its dedicated website zara.com/za. This marks an important milestone in the expansion of Zara’s integrated store and online platform into markets where it already has a store presence.
Pick n Pay launches collectable Rugby Super Cards
19/09/2019 - 11:28
Local sports fans can once again feel part of the upcoming rugby tournament thanks to the launch of Pick n Pay’s new Rugby Super Cards.