Price deflation in soft commodities hit Pioneer Food's turnover
Reuters - Feb 9th 2018, 11:05
South Africa’s Pioneer Food Group reported on Friday a 2.4 percent drop in turnover for the three months ended December, largely due to sales price deflation in soft commodities.
“Maize price realisation contracted materially with wheaten products and rice also seeing deflation, albeit to a lesser extent,” the firm said in a statement.
Excluding Nigeria, group turnover fell by 3.3 percent.
The company, which produces Weet-Bix cereal and Liqui-Fruit juice, said South African revenue declined by 5.2 percent, while revenue from the group’s international business -- including South African exports -- grew by 19.5 percent.
Pioneer is recovering from an El Nino weather pattern, which ended in 2016. It triggered drought conditions across the southern African region that hit the staple, maize, and other crops.
The group said its short-term strategy remains focused on restoring the health of the core portfolio and delivering a substantial recovery on the weak 2017 performance.
“The improved sales volume performance and normalisation of raw material cost positions (most notably in respect of maize) should support higher first-half margin and profit compared to the corresponding period,” it said.
With the group having considerable operations in the water-crisis hit Western Cape, it said contingency plans have been developed to ensure sustained supply of products.
South Africa’s second largest economic hub and tourism attraction, Cape Town, is struggling with a severe drought that could see taps turned off in May. Reuters
Pioneer Foods boosted by higher prices
18/02/2019 - 08:54
Higher prices of bread, wheat flour, rice and export fruit boosted branded foods and beverages producer Pioneer Foods’ performance in the four months ended January 31.
Booze, drugs and DIY boost Spar in difficult economy
13/02/2019 - 15:40
Robust liquor sales and the inclusion of the pharmaceutical distribution business it bought in 2018 year boosted grocery retailer Spar Group in the weeks leading up to Christmas.
Black Friday spikes turnover for SMEs
22/11/2018 - 10:50
Even though it is tempting to relegate Black Friday as just another marketing gimmick, the reality is that it signifies the start of a month-long consumer spending frenzy that significantly boosts retail revenues.
Pick n Pay keeps inflation at bay
16/10/2018 - 09:53
Measured by the volume of groceries sold, Pick n Pay delivered its strongest six-month trade performance in five years, its interim results claimed.
Pioneer Foods puts drought behind it
21/05/2018 - 09:42
Pioneer Foods enjoyed an improved performance in the six months to March, helped in part by a low base created in the year-earlier period when it was still dealing with the effects of the drought.