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Pioneer updates H1 trading expectations

4th May 2017

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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JSE-listed Pioneer Foods expects to report double-digit decreases in earnings for the six months ended March 31.

The group’s headline earnings per share (HEPS) are expected to be between 53% and 58% lower year-on-year at 233c to 261.5c for the six months under review, compared with the 556.4c reported in the prior corresponding period last year.

A 53% to 58% drop in earnings per share is also expected during the first half of 2017 to between 234c and 262.5c, compared with the 560.1c reported in the six months to March 31, 2016.

Adjusted HEPS, accounting for the broad-based black economic empowerment (BBBEE) share-based payment and one-off R9.3-million merger and acquisition (M&A) costs, is expected to be between 242.2c and 267c in the first half of the 2017 financial year – a 44% to 49% decrease on the 479.3c achieved in the prior corresponding period.

Pioneer’s operating profit before items of a capital nature for the first half under review is expected to decrease by between 40% and 45% from the R1.2-billion reported in the six months ended March 31, 2016.

The operating profit has been adjusted for the impact of the Phase I BBBEE share-based payment charge and the marked-to-market effect of the related hedge amounting to a net cost of R3.1-million – compared with the R142.7-million gain in the first half of last year – as well as the one-off M&A costs.

Pioneer pointed out that the major variance in financial performance could be ascribed to maize and fruit, which should largely be of a nonrecurring nature, with the second-half outlook reflecting an improvement on the first half of the year.

Edited by Creamer Media Reporter

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