Photo by: Duane Daws
JSE-listed Clover on Tuesday revised its expected half-year earnings upwards, with headline earnings per share (HEPS) and earnings per share (EPS) now expected to be higher-than-expected on the back of firm selling prices.
The company’s HEPS for the six months ended December 31, 2014, were expected to be between 36% and 46% higher than the 77.3c reported in the first half of the prior year.
The EPS for the period under review would reach between 31% and 41% more than the 87c apiece achieved in the six months to December 2013.
In December, Clover had stated expectations of an expected 30% and 25% rise in comparative HEPS and EPS respectively for the period under review.
Revenue for the period rose 11%, excluding the phasing out of milk sales at cost to Danone – an agreement that had ceased in December 2014. Overall sales volumes declined by 3.3% following the increase of selling prices.
The group said it had benefited from selling price increases across most categories albeit at a loss of sales volumes and market share.
“Selling prices remained firm throughout the yearly peak milk production period as industry inventory levels were being restored following the national shortage of raw milk during the winter of 2014. The gross and operating margins improved as a result,” it said in an updated trading statement.
Clover would publish its interim financial results on March 17.