Advertise with fastmoving.co.za
 
 

Pioneer Foods
Pioneer Foods

Pioneer posts sharp profit hike

FMCG SUPPLIER NEWS

Fin24 - May 23rd 2011, 07:39

Johannesburg - Pioneer Food Group posted a sharp rise in first-half profit on Monday and said it sees a tough trading environment ahead as input costs rise and consumer spending patterns remain uncertain. 

The company, which makes bread, breakfast cereal and juices, said diluted headline earnings per share for the six-months to end-March totalled 231.4c, compared with 80.3c a year earlier.

"Continuing upward pressure on costs has necessitated price increases in most categories since March. However, we believe there is room for further growth in our range of essential foods," Andre Hanekom, Pioneer Food Managing Director, said in a statement.

Headline EPS, the main gauge of profit in South Africa, strip out certain one-time items.

It said revenue rose 4% to R8.3bn.

Food also said it anticipates a tough trading environment ahead as input costs rise and consumer spending patterns remain uncertain.

"The financial performance of the group for the full year will be influenced by the group's ability to manage margins," the company said.

The company declared an interim dividend of 40c per listed ordinary share.

Pioneer last year agreed to pay R500m in exchange for having investigations against it related to unfair competitive practices dropped.

The company had also agreed to a reduction in its gross profit by R160n over a defined period for a selection of wheaten flour and bread products and to increase its capital expenditure by R150m.

Pioneer shares have gained nearly 6% so far this year, compared with a 1% drop in the JSE all-share index. 

Related News

Cashbuild flags tough environment amid rationalisation strategy
03/09/2019 - 12:51
Building materials retailer Cashbuild weathered a tough trading environment to deliver 3% growth in operating profit for the year to end-June, boosted by an extra trading week and the addition of 11 new stores.

Steinhoff revenue up 4% despite ongoing challenges
30/08/2019 - 07:56
International retailer Steinhoff said on Thursday it had continued to grow overall revenue despite the ongoing challenges facing the group, with net sales from continuing operations in the nine-month period to June 30 increasing by four percent to €10.113 billion.

Makro and Game’s owner suffers big loss as shoppers opt for cut-price goods
29/08/2019 - 09:20
Walmart-controlled Massmart, owner of Makro, Game, Builders Warehouse and Dion Wired, has suffered a headline loss of R550 million for the six months to end-June – after earning a profit of more than R200 million in the same period last year.

Distell says rest of Africa offset lower volumes in SA
28/08/2019 - 09:23
Alcoholic drinks company Distell, whose brands include Nederburg wines and Klipdrift brandies, says its rest-of-Africa business made up for lower sales volumes in SA in the year to end-June.

Walmart Q2 revenue grows 1.8% year on year
20/08/2019 - 14:13
Total revenue of Walmart for its second quarter (Q2) of Financial Year 2020 (FY20) ending July 31 hit $130.4 billion, up 1.8 percent year on year, while the net sales of Walmart International decreased 1.1 percent year on year to $29.1 billion, the company reported.