Advertise with fastmoving.co.za
 
 

South Africa’s Pioneer Food Group reported a 2.4 percent drop in turnover for the three months ended December, largely due to sales price deflation in soft commodities.
South Africa’s Pioneer Food Group reported a 2.4 percent drop in turnover for the three months ended December, largely due to sales price deflation in soft commodities.

Price deflation in soft commodities hit Pioneer Food's turnover

FMCG SUPPLIER NEWS

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 

Related News

Weaker rand boosts Rhodes Food Group
06/11/2019 - 09:48
The international turnover of Rhodes Food Group, which makes Bull Brand corned meat and Bisto gravies, grew 8.8% in its year to end-September boosted by a weaker rand and exports of higher-value products to the US.

Pioneer shareholders give nod to PepsiCo deal
16/10/2019 - 08:25
Shareholders of Pioneer Foods, the owner of brands such as Sasko bread and Ceres juices, have voted almost unanimously in favour of delisting the company, after a $1.7bn bid by PepsiCo.

Rhodes Food Group's turnover rises amid healthy international growth
16/09/2019 - 11:14
The international turnover of Rhodes Food Group, which makes Bull Brand corned meat and Bisto gravies, rose 13.4% in the 10 months to end-July, boosted by a weaker rand and exports of fruit snacks to the US.

Pioneer Foods confident competition authorities won't reject R24.4bn PepsiCo deal
25/07/2019 - 15:00
Pioneer Foods CEO Tertius Carstens is confident that the company’s R24bn takeover by PepsiCo will be approved by competition authorities, as he believes the acquisition has no negative implications for local industries.

Pioneer Foods deal will be PepsiCo's biggest in Sub-Saharan Africa
22/07/2019 - 09:04
The US food and beverages company says the deal, worth about R24bn, will boost the SA economy.