SOUTH AFRICA: Clover expects 20% earnings jump
Clover Industries has predicted a 20% rise in headline earnings per share for the six months to the end of December.
In a stock exchange statement, the South African dairy processor attributed the rise in profits to a lower marketing spend compared to last year, when the group invested heavily in supporting product launches. Clover added the bottom line was also boosted by higher selling prices in the period.
The company said further details of its performance in the trading period would be issued at a later date, due to its reliance on seasonal sales.
Clover Industries Limited
(Incorporated in the Republic of South Africa)
(Registration number 2003/030429/06)
Ordinary Share code: CLR
("Clover" or "the Group" or "the Company")
In terms of the Listings Requirements of the JSE Limited ("Listings Requirements), companies are
obliged to provide guidance to the market when they are satisfied that a reasonable degree of
certainty exists that the financial results for the forthcoming reporting period will differ by at least 20% from the results of the previous corresponding reporting period.
Accordingly, shareholders of the Company are advised that, Clover expects headline earnings per
share and earnings per share for the six months ended 31 December 2013 to be at least 20%
higher than the corresponding reporting period of the previous year.
The abovementioned is mainly attributable to the non-recurrence of significant marketing
investment in new product launches which occurred during the corresponding reporting period of
the previous year and the higher selling prices achieved during the current reporting period.
However, due to the Group's performance for the six months ended 31 December 2013 being
highly dependent on the festive season , the Company cannot with reasonable certainty, quantify
the extent of its results for the for the six months ended 31 December 2013 within the 20% range
required by the Listings Requirements.
A further trading statement for the six months ended 31 December 2013 will be issued later once
more certainty exists.
The forecast financial information on which this trading statement is based has not been reviewed
and reported on by the Company's external auditors.
17 December 2013
Original source: Clover Industries
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