JSE-listed Pioneer Foods on Monday warned shareholders its earnings for the year ended September 30, had likely halved.
In a trading update, the company said its headline earnings a share for the full-year would be between R3.98 and R4.70, compared with R9.04 in the prior financial year.
“Revenue decreased by between 4% and 6% from the R20.6-billion in the comparative period, owing to deflation, volume declines and resistance to price increases,” the company said.
Pioneer added that the unfavourable maize procurement position entered into in 2016 had muted the performance of the maize category until June.
“Fruit export performance, given the shortage of raisin stock in the first half of the financial year, was further impacted on by the lower dollar prices realised and a stronger rand,” the company said.
The weak beverage exports experienced in key African markets in the first half continued through the latter half of the financial year, owing to the unfavourable economic situation in many of these markets together with prudent credit management.
Local beverages volumes and margins suffered from reduced year-on-year demand, as well as increased competition.
The share of profit from joint ventures contracted materially during the period.
Pioneer will release its full-year results on or about November 20.