Voluntary Trading Update For The 4 Months Ended 31 January 2019 QUANTUM FOODS HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2013/208598/06) Share code: QFH ISIN: ZAE000193686 (“Quantum Foods” or “the Company”) VOLUNTARY TRADING UPDATE FOR THE 4 MONTHS ENDED 31 JANUARY 2019 An increase in feed raw material costs and a decrease in egg selling prices compared to the same period in the previous year had a significantly negative impact on earnings for the first four months of 2019. These factors will also impact earnings to be reported for the six months ending 31 March 2019. Earnings in the corresponding period of the previous year were exceptionally high. These higher level earnings were supported by low feed raw material costs and a significant increase in egg selling prices, resulting from a national shortage of eggs following the outbreaks of Avian Influenza (“AI”) in the second half of 2017. The national layer flock has now recovered to levels above those of the pre-AI period in 2017 and the expected pressure on egg selling prices resulting from increased supply has started to materialise in the 4 month period as set out herein. Below average rainfall in the maize producing areas of South Africa for the current marketing season is expected to result in a substantial increase in feed costs for the 2019 financial year. This increase in feed costs will negatively impact margins, especially in the egg business. South African operations: Margins in the egg business have decreased materially. Compared to the first four months of 2018, average selling prices per dozen decreased by 13.6%, while egg production costs increased. Volumes improved by 3.6% for the four months. The Company expects egg selling prices to further decrease in the remainder of 2019 as the full effect of the expected egg supply and demand imbalance, in a weak consumer environment, manifests itself. The feed business performed satisfactorily with stable volumes and profitability compared to the previous year. The farming business performed in line with expectation. Volumes increased in all product categories and contributed to improved profitability. Profitability in the previous year was negatively impacted by a further outbreak of AI on a layer farm in the Western Cape, while no such incidents occurred in 2019. African Operations: Weaker earnings have been reported by the African operations of the Company for the first four months of 2019. Feed raw material costs have increased compared to the previous year and these increases could not be recovered in final product selling prices. The further devaluation of the Zambian Kwacha negatively impacted the Rand earnings reported from this business. Outlook: Despite the expected further increase in feed raw material costs, it is expected that the feed and farming businesses will provide a stable contribution to earnings for the remainder of the year. The egg business, however, will continue to suffer headwinds until the supply and demand dynamics stabilise and feed costs soften. The financial information on which this trading statement is based has not been reviewed or reported on by the Company’s external auditors. Wellington 13 February 2019 Sponsor PSG Capital Date: 13/02/2019 01:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.