South Africa's Pioneer Foods H1 earnings down on maize shortfall
(Adds comment, outlook, share fall)
JOHANNESBURG, May 20 (Reuters) - South Africa's Pioneer Food
Group reported a decline in half-year earnings on
Monday, driven down by maize shortages, sending its shares down
more than 8 percent.
The food and drinks company, which uses maize in many of its
products, said it was unable to counter the shortfall.
"The year-on-year regression in the performance of the maize
category, off the strong comparative period base, was more than
expected, given sustained selling price deflation despite raw
material cost inflation and a weaker milling performance," it
At 0800 GMT, the company's share price was down 8.660
percent to 75.87 rand.
Pioneer said continued economic weakness will put pressure
on consumer spending.
Diluted adjusted headline earnings per share (HEPS) for the
six months ended March 31 fell 14% to 272.4 cents from 320 cents
a year earlier, the food and beverage company said.
HEPS is the main profit measure used in South Africa, which
strips out once-off items.
Pioneer, which also operates in Britain, said earlier this
year that the business was doing well despite Brexit
The food company's revenue rose 11.5% to 11.039 billion rand
($768.20 million), driven by growth in bread, wheat, rice,
beverages, cereals and sausage rolls in Nigeria.
Pioneer issued a dividend of 105 cents per share for the six
month ended 31 March 2019.
($1 = 14.3700 rand)
(Reporting by Onke Ngcuka, editing by Louise Heavens)
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.