CLOVER INDUSTRIES LIMITED - Trading statement

Trading statement

Clover Industries Limited
(Incorporated in the Republic of South Africa)
(Registration number 2003/030429/06)
Ordinary Share code: CLR ISIN No: ZAE000152377
(“Clover” or “the Company”)

TRADING STATEMENT

In terms of the Listings Requirements of the JSE Limited,
companies are required to provide guidance to the market when they
are satisfied that a reasonable degree of certainty exists that
the financial results for the forthcoming reporting period will
differ by at least 20% from the results of the previous
corresponding reporting period.

Accordingly, shareholders are referred to the announcement
released on the Stock Exchange News Service (“SENS”) on 17
December 2013 wherein the Company advised that headline earnings
per share (“HEPS”) and earnings per share (“EPS”) for the six
months ended 31 December 2013 were expected to be at least 20%
higher than the corresponding reporting period of the previous
year.

Shareholders are now advised that the Company expects HEPS for the
six months ended 31 December 2013 to be between 82% and 92% higher
than the corresponding reporting period of the previous year (H1
2013: HEPS 40.7 cents). Further, EPS for the six months ended 31
December 2013 are also expected to be between 80% and 90% higher
than the corresponding reporting period of the previous year (H1
2012: EPS 46.4 cents).

The increases are attributable to:-

     - the non-recurring marketing investments in new product
       launches made during the first half of 2013;

     - the implementation of selling price increases to the market
       in January 2013 and again early in the current reporting
       period;

     - reduced promotional activities following the selling price
       increases;

     - the positive contribution of project Cielo Blu;

     - various cost saving initiatives; and

     - exchange rate profits made by certain African subsidiaries
       due to the weakening of the Rand.

Shareholders are cautioned that Clover does not expect this level
of earnings improvement to continue into the second half of the
2013/14 financial year due to:

     - strong overall inflationary cost pressure specifically
       relating to raw milk, packaging and fuel costs; and

     - the negative impact of the high inflationary environment on
       consumers.

It is anticipated that Clover will release its interim results on
SENS on or about 17 March 2014.

The forecast financial information on which this trading statement
is based has not been reviewed and reported on by the Company’s
external auditors.

Johannesburg
7 February 2014

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 07/02/2014 10:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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