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Trading Statement
Pioneer Food Group Limited
Incorporated in the Republic of South Africa
Registration number: 1996/017676/06
Share code: PFG
ISIN code: ZAE000118279
(“Pioneer Foods” or “the Company” or “the Group”)
TRADING STATEMENT
Pioneer Foods provides this trading statement based on the provisional results for
the twelve months to 30 September 2012 and further to the trading update published
on SENS on 5 September 2012.
Trading in September 2012 has been better than expected in Sasko with advanced
notice of increased selling prices from July 2012 onwards contributing to increased
sales volumes. In addition Bokomo benefited from growth in the breakfast cereals
category and Ceres Beverages from increased selling prices though volumes
remained under pressure. Agri prices remained under strain at consistent volumes in
feed, eggs and poultry.
In terms of the Listings Requirements of the JSE Limited, a listed company is
required to publish a trading statement as soon as it is satisfied that a reasonable
degree of certainty exists that its financial results for the next reporting period could
differ by 20% or more from those in the previous corresponding period.
Pioneer Foods is reasonably certain that earnings and headline earnings per share
for the twelve months to 30 September 2012 will decrease by between 12% and
22% compared to the corresponding period in the previous year.
The results for the twelve months to 30 September 2012 are negatively impacted by
the once-off, non-cash flow, share-based payment charge in terms of IFRS 2
("Phase Two IFRS charge") of R161 million relating to the implementation of the
Phase Two Broad Based Black Economic Empowerment Transaction.
Adjusted earnings and adjusted headline earnings per share, excluding the Phase
Two IFRS charge of R161 million, are expected to increase by between 0% and 10%
compared to the corresponding period in the previous year.
The comparative operational performance has also been impacted by the IFRS 2
share based payment charge for the cash settled Phase One ( 2006) BEE scheme
(“Phase One IFRS charge”), as a result of the share price movements in the
respective reporting periods. In the 2011 reporting period the share price increased
from R47.60 to R59.00, resulting in a charge in the income statement of R45 million.
In the current reporting period the share price declined from R59.00 to R53.00,
resulting in a gain in the income statement of R36 million.
Consequently adjusted earnings and adjusted headline earnings per share,
excluding the Phase Two IFRS 2 charge of R161 million in 2012, as well as
excluding the impact of the Phase One IFRS charge in both reporting periods, are
expected to decrease by between 0% and 10% compared to the corresponding
period in the previous year.
The publication of the annual results for the twelve months to 30 September 2012 is
expected to be on or about 26 November 2012.
The information provided has not been reviewed or reported on by the Group’s
independent external auditors.
Paarl
16 October 2012
Sponsor
PSG Capital
Date: 16/10/2012 09:54:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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