JSE-listed Pioneer Foods foresees its group turnover increasing by 6% for the year ended September 30, or 7% excluding Pepsi and Biscuits, notwithstanding fourth-quarter market contraction, maize deflation and increased competition.

The company advised shareholders on Thursday that for the year ended September 30 it expected headline earnings per share (HEPS) from continuing operations on an adjusted basis to be between 821.1c and 844.4c, or 28.8% to 32.5% higher than the 637.4c reported for the comparative period.

Earnings per share (EPS) from continuing operations on an adjusted basis were expected to be between 820.4c and 843.7c, or 32.6% to 36.4% higher than the 618.8c reported for the comparative period.

Further, headline earnings were expected to increase by 14.5% to 18.5% compared with the comparative period. HEPS were expected to be between 654.8c  and 678.1c, or 13.8% to 17.8% higher than the 575.6c reported for the comparative period.

Attributable earnings were expected to increase by between 14.5% and 18.9% on the comparative period’s results, while attributable EPS were expected to be between 598.9c and 622.1c, or 13.8% to 18.2% higher than the 526.5c reported for the comparative period.

The company noted that its core categories recorded a solid volume and turnover performance, resulting in market share gains during the year under review.

Groceries, excluding Pepsi and Biscuits, recorded a strong performance driven by wheat biscuits, cornflakes and long-life fruit juice, while the International division recovered well in the second half in both revenue and profitability, bolstered by fruit exports.

Essential Foods and, in particular, Bakeries, sustained momentum with a consequent step change in profitability and margins relative to the prior year.

The top line performance for the group translated into significant operating leverage, while operating profit before items of a capital nature on an adjusted basis were expected to increase year-on-year by between 26.3% and 29.9%.

A severe cost-push was offset by a sustained focus on costs and extracting efficiencies across the value chain. The overall group margin consequently expanded compared with the prior year.

Pioneer Foods’ results for the year ended September 30 were scheduled to be released on or about November 24. The information in its trading update had yet to be reviewed and reported on by the group’s auditors.