QUANTUM FOODS HOLDINGS LIMITED - Trading Statement

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 2017, the Company expects headline earnings per share of between 46.5
cents and 52.1 cents, being an increase of between 65% and 85% compared to the
headline earnings of 28.2 cents per share for the previous corresponding period.

Shareholders are further advised that in respect of the twelve months ended 30
September 2017, the Company expects earnings per share of between 52.1 cents and
59.9 cents, being an increase of between 33% and 53% compared to the earnings of
39.2 cents per share for the previous corresponding period.

The results for the twelve months ended 30 September 2017 have been affected by:

 -   Significantly lower feed costs in the second half of 2017 compared to both the
     first half of 2017 and the previous year following the harvest of a record maize
     crop in South Africa and a relatively stronger Rand;
 -   This specifically impacted earnings in the eggs business where margin recovery
     in the second half of the year was further assisted by increased selling prices;
 -   A solid contribution from the feeds business where external sales volumes
     increased, also with the Olifantskop feed mill being included for a full year
     compared to only 7 months in the previous year;
 -   A R30million charge for the value of layer hens destroyed and associated clean-
     up costs following an outbreak of Avian Influenza on the Groups farms in the
     Western Cape in September 2017; and
 -   A recovery in trading conditions for the other African businesses in the second
     half of 2017.

Profit from the sale of a dormant Western Cape abattoir and a property in Oudtshoorn
also not core to the Groups operations are included in the expected earnings per share
for the twelve months ended 30 September 2017. Shareholders are reminded that
profit from the sale of the Hartbeespoort abattoir amounting to 11.0 cents per share
were included in 2016 earnings per share.

Shareholders are further advised that, in terms of the general authorisation granted to
the directors of the Company by shareholders, a total of 9 488 659 shares were bought
back and cancelled by the Company during the year ended 30 September 2017.
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 2017 are expected to be released on
SENS on or about Thursday 23 November 2017.

Wellington

19 October 2017

Sponsor

PSG Capital Proprietary Limited

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