Sovereign Food Investments, the South African poultry products supplier, has said it is in talks that could affect its share price.

In a statement to the Johannesburg Stock Exchange yesterday (1 October), Sovereign said: “Shareholders are advised that Sovereign has entered into discussions, which if successfully concluded may have a material effect on the price of the company’s securities. Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities until a further announcement is made.”

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Sovereign supplies chicken under brands including Meal Makers, Braai n Grill and Extra Packs. It manufactures breaded and fully cooked products under the Chicka Chicken and Southern Style Crispy Crumbed Chicken brands for retailer Spar. The company also supplies foodservice operators.

In the company’s last full financial year, which ran until 28 February, it saw revenue increase 19% to ZAR1.65bn (US$119.4m).

Operating profit before depreciation and impairments stood at ZAR145.2m, compared to ZAR99.5m a year earlier. Profit after taxation reached ZAR77.6m, versus ZAR44.8m the previous year. Headline earnings per share were up 72% at 103.3 cents.

See Also:

On Monday, another South African poultry group, Quantum Foods, said it was in talks that could have an impact on the company’s share price. Contacted by just-food, Quantum CEO Hennie Lourens declined to comment further as the company was “bound by confidentiality undertakings”.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

There has been nothing to say the two announcements are linked.