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PFG - Pioneer Food Group Limited - Trading Update for the four months to 31 January 2011 PIONEER FOOD GROUP LIMITED (Incorporated in the Republic of South Africa) (Registration number 1996/017676/06) JSE share code: PFG ISIN: ZAE000118279 ("the Company" or "Pioneer Foods") Trading Update for the four months to 31 January 2011 At the 14th Annual General Meeting of shareholders held this morning, the Chairman made the following comments on trading for the four months to 31 January 2011: Open Quotation "We saw food retail remaining buoyant during the festive season that corresponds with the volume growth we`ve seen in our business. Revenue for the four months to January 2011 increased by 2.3% to R5.5 billion over the corresponding period as sales volumes in all business units increased by some 5% in the Group`s average product basket, with price inflation moderating to neutral values in most categories, principally due to the strong Rand in the second half of last year and improving cost efficiencies. Operating expenditure such as fuel, electricity and payroll expenses however continue to place upward pressure on costs with grain commodities such as wheat and yellow maize increasing by more than 20% in Rand terms in the current financial year alone. The unusual weather patterns are a point of concern. The production of wheat and yellow maize in particular has been impacted by the abnormally high summer rainfall and the raisin crop is expected to be substantially lower this year due to the flooding experienced in the Orange River basin. Consequently inflationary pressure in our product basket is expected to increase again as the supply of key commodities remain under pressure in these volatile production environments, leading to anticipated increases in food prices in months to come. As agreed with the Competition authorities price reductions in defined wheaten and bread products were implemented in early December 2010 and we`re making good progress." Close Quotation The information provided above have not been reviewed or reported on by the Group`s independent auditors. Paarl 18 February 2011 Sponsor PSG Capital Date: 18/02/2011 09:39:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
