Poultry supplier Sovereign Food Investments forecasts FY loss

Poultry supplier Sovereign Food Investments forecasts FY loss

Sovereign Food Investments, the South Africa-based poultry processor, has forecast it will post a loss for the year to the end of February.

The company expects a loss per share and headline loss per share of between 42 cents and 54 cents. The results would compare to 108.3 cents per share and headline earnings per share of 108.4 cents a year ago.

Sovereign Food Investments said the results include one-off costs from defending itself from last year's takeover bid from fellow South African poultry group Country Bird Holdings. The company said those costs amounted to 41.2 cents per share. It is set to publish its annual results on 12 May.

In November, Sovereign Food Investments booked a headline first-half loss of ZAR36.5m (US$2.7m) for the six months to the end of August despite a 31% jump in revenue. As well as the cost of rebuffing the Country Bird Holdings interest, Sovereign Food Investments then pointed to a 15% rise in feed costs due to the higher prices of maize and soya beans.

That month, South Africa's government ruled Country Bird Holdings' bid had contravened regulations, a ruling that means the offer had lapsed.