Pioneer back on an even keel
2009-12-03
PIONEER FOODS’ earnings growth for the year brought them back to an even keel, after the slow and declining growth they showed in recent reporting periods. This week, the Paarl listed food producer reported its annual results for the year to September. With their revenue up by 9% (R16,3 billion), operating profit up by 34% (R1,2 billion), headline earnings per ordinary share up 22% (355 cents) and their final dividend per ordinary share up 35% (89 cents), André Hanekom, Managing Director, said they achieved a satisfactory set of results. “An excellent performance from Sasko improved our capacity utilisation with increased sales volumes in maize products in particular, which led to margin growth. “Lower commodity prices reduced our investment in inventory and debtors which released cash from working capital. The lower debt levels on average decreased finance charges which provided an additional impetus to earnings. “We expect modest earnings growth in the first half of the current financial year, depending on the collective impact of declining raw material prices, increasing labour, transport and electricity costs, shifting consumer patterns shaping volume growth and continuing deflationary pressure on selling prices,” he said.
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