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PIONEER FOOD GROUP LIMITED - Voluntary Trading Update For The Eleven Months To 31 August 2013

Release Date: 16/09/2013 11:39
Code(s): PFG     PDF:  
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Voluntary Trading Update For The Eleven Months To 31 August 2013

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 Group” or “the Company”)

VOLUNTARY TRADING UPDATE FOR THE ELEVEN MONTHS TO 31 AUGUST 2013

Pioneer Foods is providing this voluntary trading update based on the results for the 11 months to
31 August 2013. The Company enters into a closed period today until the publication of the annual
results for the period ending 30 September 2013. These results will be announced on or about 25
November 2013.

Revenue for the 11 months increased by 10% to R18 billion. The weak consumer environment
continued to impact on volume growth, limiting it to an average of 3% across the Group’s basket.

At an industry level, wheat consumption for the nine months to July is down by 1.2% and maize
slightly up by 0.7%. The weakening of the Rand against the US Dollar has reversed underlying US
Dollar based maize and wheat deflation, especially during the latter part of the reporting period.

Sasko sales volumes in wheat and bread products remained soft compared to the corresponding
period in the prior year while maize, rice and pasta reflect gains. The Thailand rice pledging scheme
is still impacting international rice prices.

Bokomo Foods achieved solid volume growth during the period under review, with a significant
increase in vine fruit volumes. Breakfast cereal volumes are marginally up indicative of difficult
market conditions. Moir’s biscuits sustained double digit volume growth ahead of the market.

The Ceres Beverage business sustained the excellent performance of the first half, regaining lost
market share profitably. Cost control and enhanced manufacturing efficiencies bodes well for
profitability.

Whilst feed volumes in Quantum Foods were stable, price increases offset higher raw material costs.
Unprecedented price and volume pressure in the broiler industry continued. Measures to contain
operating cost increases and improve efficiencies could not compensate. Sales prices in the egg
business increased over the past 2 months as supply and demand dynamics improved and margins
consequently strengthened.

The Zambia and Uganda businesses continue to increase their contribution to overall performance.

The information provided has not been reviewed or reported on by the Group`s independent
auditors.

Paarl
16 September 2013

Sponsor
PSG Capital

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