Country Bird posts profit increase

Country Bird posts profit increase

FMCG SUPPLIER NEWS

IOL Business - Aug 24th 2011, 08:14

Poultry producer Country Bird Holdings (CBH) on Tuesday posted a 178% rise in diluted headline earnings per share to 64.57 cents for the year ended June, from 23.25 cents in the previous comparable period. 

Operating profit for the year jumped by 81% to 220.8 million rand, supported by good performances in the poultry and feed sectors both locally and abroad.

Country Bird currently operates in SA, Botswana, Namibia and Zambia.

The group declared a final capital distribution of 10.84 cents per share. Revenue was up 16% to 2.8 billion rand.

The South African poultry division reported an 11% increase in volumes sold for the period. This, together with a 4% reduction in the cost of feed, continuous progress in operational efficiencies and disciplined cost control, resulted in a 58% improvement in operating profit for the period to 142.1 million rand. Average poultry selling prices over the year have remained unchanged.

Revenue in the African poultry division, which comprises a grandparent breeding operation in Zambia and a parent breeding operation and broiler operation in Botswana, increased.

The group said even though poultry pricing at the start of the financial year had been under pressure production results stayed in sharp focus to ensure that Supreme remained an industry leader.

Country Bird said the subsequent weakening of the rand and anti-dumping initiatives by The South African Poultry Association should have further positive impact going forward.

“In the South African feed business, the scientific development of bespoke feed rations has assisted Supreme Poultry and its customers to achieve outstanding growing results. This has attracted new customers, taking production levels to an optimum level of efficiency,” it said.

The feed mills in Zambia and Botswana were performing well and the re- establishment of Tswana Pride's Abattoir that had burnt down will result in good growth in feed volume and market penetration. Operational efficiency and margin improvement remain the focus going forward, the company said.