Adverse trading conditions slash Pioneer Foods' earnings by half

20th November 2017 By: African News Agency

South African food group Pioneer said on Monday its adjusted headline earnings per share for the year ended 30 September 2017 fell by half, largely due to constrained trading conditions.

The company also said maize procurement in the period to May had been hit by severe drought in the northern part of South Africa during the 2015/16 season.

“As mentioned in the trading statement issued on 23 October 2017, the 2017 financial year presented a number of challenges,” it said.

“Consequently, adjusted headline earnings per share decreased by 50 percent to 442 cents,” it added, pointing out however that cost cutting measures had boosted its cash flow generation, allowing it to declare a dividend equal to that of the prior year.

“Pioneer Foods is well positioned for recovery during the 2018 financial year,” said the firm, whose brands include Bokomo cereals, Liqui-Fruit and Safari dried fruit.