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Results Of Annual General Meeting
Clover Industries Limited
(Incorporated in the Republic of South Africa)
(Registration number 2003/030429/06)
Ordinary Share code: CLR ISIN No: ZAE000152377
Preference Share code: CLRP ISIN No: ZAE000152385
(“Clover” or “the Group” or “the Company”)
RESULTS OF ANNUAL GENERAL MEETING
Clover Industries Limited shareholders are advised that at the
Annual General Meeting of members held on Friday, 30 November
2012, all the ordinary and special resolutions as proposed in the
Notice of the Annual General Meeting were approved by the
requisite majority of members.
Clover’s retiring chairman, John Bredin, made the following
comments at the AGM:
“We appreciate the continued participation and support of our
shareholders over the past year.
Global and domestic conditions are set to remain difficult with
inflationary pressures expected to continue into the coming year.
Clover will continuously monitor and address the impact of these
external factors where applicable. The implementation of Project
Cielo Blu continues according to schedule and we expect that the
increased efficiencies, additional cost savings drives and other
margin-enhancing projects will ensure that Clover retains a
healthy market share and strong balance sheet.
Today is my last AGM and I will soon be bidding farewell to the
Group to devote myself fully to dairy farming in KwaZulu-Natal. It
has been an honour to serve Clover in my capacity of Chairman and
Director over the past 22 years.
I wish to take this opportunity to thank all those who contributed
to the Group’s success during my tenure and especially to my
fellow board members whose support over the past seven years has
been invaluable in setting Clover on its next phase of growth.”
Clover’s Nomination Committee has made a recommendation to the
Board with regards to the new Chairman and the Board will be
voting on the Chairman’s appointment as soon as possible.
ENQUIRIES
Clover Industries Limited +27 (0) 11 471 1702
Johann Vorster – Chief +27 (0) 82 462 0083
Executive
Jacques Botha – Chief +27 (0) 83 283 4035
Financial Officer
College Hill +27 (0) 11 447 3030
Morné Reinders +27 (0) 82 815 1844
Frédéric Cornet +27 (0) 83 307 8286
Any forward looking statement included in this announcement has
not been reviewed and reported on by Clover’s external auditors
and does not constitute an earnings forecast. The audited
financial statements for the year ending 30 June 2012 and a link
to the webcast of an analyst and investor presentation by
management, will be available on the Company’s website this
morning.
NOTES TO EDITORS
OVERVIEW
Operating in one form or another since 1898, Clover has enjoyed a
long and successful history as part of the development of South
Africa’s dairy and Fast Moving Consumer Goods industry. Today,
Clover is a leading and competitive branded consumer goods and
products group operating in South Africa and other selected
African countries with core competencies in:
- The production of dairy and non-dairy consumer products
- The distribution of chilled and ambient consumer products
- The sales and merchandising of fast moving consumer goods
Clover produces and distributes (for itself and other FMCG
companies) a diverse range of dairy and non-dairy consumer
products to consumers and customers though one of the largest and
most extensive distribution networks in South Africa. The business
platform, created and sustained by the dairy business, provides
the perfect platform for the Group to reach an extensive cross
section of South African customers and consumers. Clover’s
business platform spans the breadth of the value chain from
production to sales and integrates key value-added support
services such as logistics, supply chain management, sales and
merchandising. Clover’s market penetration (Clover delivers to
approximately 14,000 delivery points across South Africa) coupled
with its value-added services offering and high frequency of
delivery, positions Clover to exploit attractive opportunities for
organic and acquisitive growth.
Clover was converted from a co-operative society into a public
company in 2003. Subsequent to the conversion, Clover has evolved
into a dynamic demand-driven branded consumer products business
with attractive growth prospects. As part of its evolutionary
process, Clover implemented a capital restructuring on 31 May 2010
which was a milestone in Clover’s corporate development and
resulted in both economic benefits and voting control vesting in
the ordinary shares. In addition, the delinking of the ordinary
shares from the delivery agreements enabled persons other than
dairy producers to acquire ordinary shares, facilitating Clover’s
ability to raise equity capital. Capital scarcity has historically
been a key constraint for Clover’s growth and development.
CORPORATE STRATEGY
Clover’s corporate strategy is to build onto existing competencies
within the Group and to establish a culture of exceptional
performance with a view to creating a platform for future market
expansion.
Key to all of Clover’s activities is the expansion of capacities
to share in the strong growth in consumption in the product
segments in which it has a leading market share.
Clover has identified a unique set of strategic pillars on which
the success of the business is founded. These strategic pillars
are managed and measured by the company across all business
activities by means of a Balanced Score Card.
The strategic pillars are:
- To optimise the brand portfolio
- To simplify and reduce costs in the supply chain by changing the
operational model to fit with the business model
- To increase market share through sales and distribution by
leveraging off Clover’s strong distribution capabilities (Clover’s
aim is to constantly redesign service offerings to customers and
Principals in order to increase sales volumes and profitability of
the route to market)
- To actively support the business in the most effective and
efficient manner
- To constantly adapt Clover’s Human Resources capabilities in
order to fit its business model
- To successfully complete value-enhancing capital projects
through proper planning, project management and the tracking of
the business case benefits and
- to actively seek value-enhancing corporate activity
COMPETITIVE STRENGTHS
Clover is a market leader in the production, distribution, sales
and merchandising of branded consumer goods. Clover’s leading
market position is a result of its ability to leverage its core
competencies across its product portfolio sustained by:
1. An iconic South African consumer brand with market recognition
and pricing power
2. Exposure to an attractive industry with favourable fundamentals
3. Access to one of the largest chilled and ambient distribution
networks in South Africa
4. Value-enhancing optimisation and expansion projects (Project
Cielo Blu)
5. Strong and unique relationships with its milk producers
6. Attractive growth opportunities
7. Dynamic management team with significant experience in the
dairy and FMCG business
BRANDS
CLOVER CLOVER DUAL- STAND-ALONE NON-CLOVER
BRANDED BRANDED ENDORSED BRANDING
PRODUCTS PRODUCTS PRODUCTS
Milk Milk Beverages Milk
Fresh milk Clover Mmmilk Aquartz Creamline UHT
UHT Milk Clover Great Capri-Sun Cheese
Steri Milk Taste No Fat Tropika Elite
Cheese Clover The One Manhattan Sacca
VP Cheese Ultramel UHT Super M
Processed Beverages Danao Other
cheese slices Clover Krush Butters Elite Skim
Feta Clover Life Erica Milk Powder
Mozzarella Butter and Tulip The Real
Beverages spreads Juice Co
Cheese
Nectar (KZN) Clover Butro Berg
Other butter spread
Other
Cream Clover
Mooirivier Cream cup
Condensed butter Kremel
Milk
Clover Surromel
Ghee Springbok
Whey butter
Whey Clover
concentrate Farmstyle
Full Cream Cheese
Milk Powder Clover Tussers
Rolled Dry
powders
Buttermilk
powder
8g Butter
Johannesburg
30 November 2012
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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