To view the PDF file, sign up for a MySharenet subscription.

QUANTUM FOODS HOLDINGS LIMITED - Trading Statement

Release Date: 14/10/2016 15:00
Code(s): QFH     PDF:  
Wrap Text
Trading Statement

QUANTUM FOODS HOLDINGS 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 in respect of the twelve months ended 30 September
2016, the Company expects headline earnings per share of between 21.6 cents and 32.4
cents, being a decrease of between 40% and 60% compared to the headline earnings of 54.0
cents per share for the previous corresponding period.
Shareholders are further advised that in respect of the twelve months ended 30 September
2016, the Company expects earnings per share of between 32.6 cents and 43.5 cents, being
a decrease of between 20% and 40% compared to the earnings of 54.4 cents per share for
the previous corresponding period.
The results for the twelve months ended 30 September 2016 have been affected by:

   -   Significantly increased raw material costs, associated with the drought in South Africa
       and continued ZAR weakness, which negatively affected the cost of raw materials, and
       specifically impacted earnings in the eggs as well as in the layer livestock farming
       businesses where price recovery has not been sufficient;
   -   Lower egg sales volumes due to an increased prevalence of diseases that negatively
       impacted the productivity of layer livestock farming;
   -   The implementation of the revised broiler business model, which resulted in the exit of
       the broiler meat market and the Company becoming a broiler livestock farmer,
       supplying other abattoirs. This was completed with the sale of the Hartbeespoort
       abattoir in October 2015 and has resulted in largely de-risking the broiler business with
       earnings more dependent on volumes and farming efficiencies than the ability to
       recover cost increases from the market. This business model change contributed
       positively to earnings for the year. The profit from the sale of the Hartbeespoort abattoir
       is included in the expected earnings per share for the twelve months ended 30
       September 2016; and
   -   Lower earnings from African operations, impacted by instability in currencies, lower
       sales volumes and higher input costs not being recoverable from selling prices due to
       increased pressure on the consumer.

Shareholders are further informed that, in terms of the general authorisation granted to the
directors of the company by shareholders at the 19 February 2016 Annual General Meeting,
a total of 1 445 274 shares were bought back and cancelled by the Company during the year
ended 30 September 2016.

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 12 month
period ended 30 September 2016 are expected to be released on SENS on or about Thursday
24 November 2016.

Wellington
14 October 2016

Sponsor
PSG Capital Proprietary Limited

Date: 14/10/2016 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.

Share This Story