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PIONEER FOOD GROUP LIMITED - Voluntary Trading Update For The 3 Month Period Ended 31 December 2014

Release Date: 13/02/2015 09:30
Code(s): PFG     PDF:  
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Voluntary Trading Update For The 3 Month Period Ended 31 December 2014

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”)

VOLUNTARY TRADING UPDATE FOR THE 3 MONTH PERIOD ENDED 31
DECEMBER 2014

Shareholders are hereby advised that the trading conditions
for the 3 month period ended 31 December 2014 remained
challenging within an ever increasing competitive landscape.

Notwithstanding the aforementioned, select categories
reflected an uptick in consumer demand. Pioneer Foods managed
to increase market share (Source: IRI Aztec 3mm Dec) in most
categories it competes in.

Of significance is price deflation in a few categories, most
notably maize, which as a consequence has constrained revenue
growth. Group revenue for the three months was up 7%. Volume
growth realised in major categories was pleasing, with the
exception of the wheat and rice categories. The international
business achieved fair beverage volume growth in Africa and
positive leverage, however, the dried fruit performance was
somewhat constrained due to competitive global pricing.

Volume and revenue growth rates for the major categories
during the 3 month period are set out below:

                     VOLUME        REVENUE
                         %              %
Bread                   13            19
Maize                    9             1
Wheat                  (3)             3
Rice                     2             3
Breakfast Cereals       21            21
Local Juices             8            13
International            2            12

Positive operating leverage was generated given sustained
progress with cost and efficiency improvements,
notwithstanding the disruptive and costly impact of Eskom
power supply volatility.
                            
Pioneer Foods expects to report an improved adjusted operating
profit and adjusted headline earnings performance for the six
months ending 31 March 2015 (both adjusted for the impact of
the Phase 1 B-BBEE deal on the back of the share price
movement). Once sufficient certainty exists, a further update
with an indicative range will be provided to the extent
necessary.

The information provided in this trading update has not been
reviewed or reported on by the Group’s independent external
auditors.

Shareholders are advised that a short presentation delivered
by the CEO at today’s Annual General Meeting, is available on
the Company’s website www.pioneerfoods.co.za.

Bellville
13 February 2015

Sponsor
PSG Capital

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