Quantum interim results March 2019
Revenue for the period increased to R2.103 billion (2018: R2.035 billion), gross profit rose to R497.7 million (2018: R453 million), operating profit fell to R120.6 million (2018: R244.2 million), profit for the period lowered to R95.1 million (2018: R183.2 million), while headline earnings per share nearly halved to 45.4 cents per share (2018: 82.5 cents per share).
The Group targets a HEPS cover of approximately four times for the declaration of total dividends.
The Board has approved and declared a gross interim dividend of 8 cents per share from income reserves for the six months ended 31 March 2019. However, the Board considered the cash outflow of the planned repurchase of shares to be voted on by shareholders on 27 May 2019 and therefore increased the HEPS cover.
The period ahead is expected to be characterised by a further decline in egg prices and higher feed input costs. The eggs and other African businesses' profitability is therefore expected to be under increased pressure during the second half of 2019. The animal feeds and farming businesses are, however, expected to produce stable financial results compared to the first half of 2019.