Diary products manufacturer Clover has warned that its headline earnings per share (HEPS) for the financial year ended June 30 are likely to decrease by between 65% and 67% year-on-year as a result of the prolonged drought and rand volatility that resulted in above-inflation input costs.
The company had posted HEPS of 188.9c for the 2016 financial year.
Earnings a share, meanwhile, are expected to be between 54% and 56% lower than the 185.9c reported in the 2016 financial year.
Clover on Thursday noted that while the after-effects of the prolonged drought will be felt for some time, a gradual recovery in milk and fruit production volumes is expected.
“The one-off restructuring costs and the impact of the drought are seen as nonrecurring anomalies, and given the recent improvement in the economy and strengthening of the rand, management is optimistic for a reduction in input cost inflation,” it added.
The company will release its results on September 12.