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Pioneer Foods’s share price fell 6% to R110.62 after it warned shareholders its earnings for the year to end-September had halved.
Pioneer Foods’s share price fell 6% to R110.62 after it warned shareholders its earnings for the year to end-September had halved.

Pioneer’s shares fall after profit warning

RETAILER NEWS

By Robert Laing - Oct 23rd 2017, 10:34

Pioneer Foods’s share price fell 6% to R110.62 after it warned shareholders its earnings for the year to end-September had halved. 

Pioneer said it expected to report on November 20 that its headline earnings per share (HEPS) would fall to between R3.98 and R4.70 from the previous year’s R9.04.

Revenue decreased by between 4% and 6% from the R20.6bn in the comparative period due to a combination of deflation, volume declines and resistance to price increases, the trading statement said.

"The unfavourable maize procurement position entered into in 2016 muted the performance of the maize category until June. Maize has since been milled at market-related cost."

"Fruit export performance, given the shortage of raisin stock in the first half of the financial year, was further impacted by the lower US dollar prices realised and a stronger rand," Pioneer said.

By 9.30am the stock had recouped some of the losses, to trade 2.36% lower at R115.20.
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Read more about: shares | profit | pioneer foods

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