Clover expects significant rise in FY earnings
JSE-listed food and beverage company Clover expects its headline earnings per share (HEPS) for the year ended June 30, to increase by between 64.2%, or 65.9c, and 74.2%, or 76.2c, on the HEPS of 102.7c reported for the prior financial year.
Further, earnings per share (EPS) were expected to be between 81.3%, or 83.2c, and 91.3%, or 93.4c, higher than the EPS of 102c reported in the prior comparative period.
“The much-improved performance can be mostly attributed to selling price increases across most categories, albeit with some loss of sales volumes and market share. The gross and operating margins accordingly improved considerably,” the group said in a statement.
Additional sales volumes from Clover’s new yoghurt and custard products, as well as from the recently acquired Nkunzi Milkyway business contained the overall volume loss, compared with the previous year, to 1.7%.
In addition, the recognition in a group subsidiary of a deferred tax asset, not previously allowed, resulted in a significant reduction in the effective tax rate. This contributed to a 5.8% increase in HEPS and EPS respectively over the prior year,” the group noted.
Clover’s financial results would be released on or around September 16.
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