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QUANTUM FOODS HOLDINGS LIMITED - Trading Statement

Release Date: 16/09/2015 10:10
Code(s): QFH     PDF:  
Wrap Text
Trading Statement

QUANTUM FOODS HOLDINGS LIMITED
(previously Business Venture Investments No 1792 Proprietary Limited)
(Incorporated in the Republic of South Africa)
Registration Number: 2013/208598/06
Share Code: QFH
ISIN Code: ZAE000193686
(“Quantum Foods” or “the Company”)

TRADING STATEMENT

In terms of the Listings Requirements of the JSE Limited, a listed company is required to
issue a trading statement once it is satisfied that a reasonable degree of certainty exists that
the financial results for the period to be reported upon next will differ by at least 20% from
the financial results for the previous corresponding period.

Shareholders are hereby advised that a reasonable degree of certainty exists that the
earnings per share of the Company for the year ended 30 September 2015 are expected to
be a minimum of 50.0 cents per share (2014: 3.6 cents loss per share), being a minimum
increase of 1473% from the previous corresponding period. Shareholders are further
advised that the headline earnings per share of the Company for the year ended 30
September 2015 are expected to be a minimum of 49.4 cents per share (2014: 11.2 cents
per share), being a minimum increase of 343% from the previous corresponding period.

Once sufficient certainty exists, a further update with a final indicative range for the year
ending 30 September 2015 will be provided to shareholders (“the Updated Trading
Statement”).

The loss per share and headline earnings per share for the previous corresponding period
set out above were based on Quantum Foods’ actual number of shares in issue on the date
of listing on the JSE on 6 October 2014, being 233 248 590 shares.

Shareholders are referred to the announcement released by the Company on SENS on 11
May 2015 in which shareholders were advised that the Company and Quantum Foods
Proprietary Limited (“the Sellers”) had concluded an agreement with Sovereign Food
Investments Limited and Crown Chickens Proprietary Limited in terms of which the Sellers
will dispose of the Tydstroom abattoir business in Hartebeespoort, Gauteng (“the
Transaction”). Shareholders are advised that the Transaction has not yet been approved
by the relevant Competition Commission authorities and as such, the impact of the profit of
the disposal, in respect of the Transaction, has not been taken into account in calculating the
earnings per share and the headline earnings per share of the Company for the year ending
30 September 2015, as set out above. Should Competition Commission approval be
obtained before 30 September 2015, the impact of the Transaction on the earnings per
share and the headline earnings per share of the Company will be included in the Updated
Trading Statement.

Lower maize and soya meal costs due to an improved international stock situation has
benefited both broiler and egg production costs and contributed to the improved results for
the current financial period. Further contributions to the improved results for the current
financial period are the increases in egg selling prices and volumes of layer livestock sold.
Quantum Foods’ broiler business also returned to profitability due to the re-engineering of
the Western Cape business model, as well as improved volumes and cost efficiencies at the
Company’s Hartebeespoort abattoir.

The financial information on which this trading statement is based has not been reviewed or
reported on by the Company’s auditors. Quantum Foods’ financial results for the year ending
30 September 2015 are expected to be released on SENS on or about Thursday, 26
November 2015.

Wellington
16 September 2015

Sponsor
PSG Capital

Date: 16/09/2015 10:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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