Trading Statement And Update For The Year Ended 30 September 2018
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")
TRADING STATEMENT AND UPDATE FOR THE YEAR ENDED 30 SEPTEMBER 2018
The following disclosure is made in accordance with Section 3.4 (b) of the Listings Requirements of the JSE
Limited. Pioneer Foods advises that for the year ended 30 September 2018, a reasonable degree of certainty
exists that operating profit and earnings will be as follows:
30 September 2018 30 September 2018
expected range expected % change
R19 868 million - R20 456
Revenue R19 575 million 1.5% - 4.5% higher
R1 549 million - R1 665
before items of a R1 156 million 34% - 44% higher
profit before items of R1 570 million - R1 698
R1 276 million 23% - 33% higher
a capital nature (note million
Headline earnings per
410.1 cents 541.3 cents - 582.3 cents 32% - 42% higher
earnings per share 442.2 cents 548.3 cents - 592.5 cents 24% - 34% higher
Earnings per share 390.3 cents 573.7 cents - 612.8 cents 47% - 57% higher
1. Adjusted for the IFRS 2 share-based payment charge relating to the Phase 1 (2006) B-BBEE transaction and
the effect of the related hedge. An adjustment was also made in September 2017 for specific once-off
merger and acquisition costs (R17.6 million).
Pioneer Foods delivered positive revenue and volume growth from existing and acquired businesses at
supportive price points whilst maintaining cost discipline. The consequent procurement benefits and
efficiency gains enhanced operating profit over a weak corresponding period. Overall revenue growth was
positive notwithstanding the material soft commodity deflation during the period.
Trading conditions continue to reflect a constrained demand environment as consumers are faced with
increased inflationary pressures. This was more prevalent in the second half as rising input costs were
exacerbated by the weakening exchange rate and persistent oil price increases. Increasing competitor
tensions, weaker consumer demand and the resultant inability to fully recover input cost inflation
characterises the current trading environment.
Pioneer Foods is due to release its full year results for the year ended 30 September 2018 on or about 19
The financial information contained in this trading update, has not been reviewed or reported on by the
Group’s external auditors.
4 October 2018
Sponsor: PSG Capital (Pty) Ltd
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