South Africa’s Pioneer Food Group has booked a mixed set of annual results with earnings down but sales up.
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Earnings in the 12 months to the end of September amounted to ZAR578.5m (US$57.4m), down from ZAR599.2m a year earlier. Operating profit remained flat at ZAR1.05bn.
A weak consumer environment, “significant” increases in input costs, and exchange rate volatility placed pressure on margins, the company said. Margins were down from 30.1% to 29.5%.
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By GlobalData“Significant change is under way at Pioneer Foods to position the organisation more competitively,” said CEO Phil Roux. “The organisation has shown resilience by producing a fair set of results in a constrained and highly competitive market environment. Certain categories excelled while others encountered stronger headwinds. That said, clarity of strategic direction enabled by a more efficient business model should bode well for medium term prospects for the organisation.”
Revenue from continuing operations was up 9% to ZAR17bn, largely due to increased sales prices, as volumes across the group’s basket increased by only 1%.
Click here to view the full earnings release.
