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Updated 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 Group” or “the Company”)
UPDATED TRADING STATEMENT
Shareholders are referred to the announcement released on the
Stock Exchange News Service (“SENS”) on 23 December 2014 wherein
the Company advised that headline earnings per share (“HEPS”)
would be more than 30% higher and earnings per share (“EPS”) more
than 25% higher than the previous year’s corresponding six month
period (the six months ended 31 December 2013).
Shareholders are now advised that the Company expects HEPS for the
six months ended 31 December 2014 to be between 36% and 46% higher
than the first half of the previous financial year at between
105,25 cents per share and 112,98 cents per share (1H14: HEPS 77,3
cents). Further, EPS for the six months ended 31 December 2014 is
expected to be between 31% and 41% higher than the first half of
the previous financial year at between 114,16 cents per share and
122,86 cents per share (1H14: EPS 87,0 cents).
The Group benefitted from selling price increases across most
categories albeit at a loss of sales volumes and market share.
Selling prices remained firm throughout the annual peak milk
production period as industry inventory levels were being restored
following the national shortage of raw milk during the winter of
2014. The gross and operating margins improved as a result.
Revenue for the period under review increased by 11% if the
phasing out of raw milk sales at cost to Danone is excluded. This
agreement ceased on 31 December 2014. Overall sales volumes
declined by 3.3% following the increase of selling prices.
Farm gate milk prices remain high in relation to on-farm costs.
This is mainly as a result of the shortage of raw milk supply
during the last quarter of the previous financial year and
volatility in the raw milk market following Clover’s cessation of
milk supply to Danone.
These relatively high prices have resulted in a sharp increase in
national milk production during the six month period, peaking at
7% at the end of December 2014. Despite strong growth in national
milk supply, high farm gate milk prices are not expected to reduce
until after the winter of 2015 as a result of fierce competition
for raw milk currently experienced.
Should the growth in national milk production however continue, a
general over supply of raw milk may be likely in the spring and
summer of 2015.
The forecast financial information on which this trading statement
is based has not been reviewed and reported on by the Company’s
external auditors.
The Company expects to release its interim financial results for
the six months ended 31 December 2014 on SENS on or about 17 March
2015.
Johannesburg
10 February 2015
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 10/02/2015 03:00:00 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.
