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PIONEER FOOD GROUP LIMITED - Trading Statement And Update For The Year Ended 30 September 2018

Release Date: 04/10/2018 14:10
Code(s): PFG     PDF:  
Wrap Text
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

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
                                                     30 September 2018             30 September 2018
                                                       expected range              expected % change

                                                  R19 868 million - R20 456
 Revenue                     R19 575 million                                       1.5% - 4.5% higher

 Operating profit
                                                   R1 549 million - R1 665
 before items of a           R1 156 million                                         34% - 44% higher
 capital nature

 Adjusted operating
 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

 Adjusted headline
 earnings per share            442.2 cents        548.3 cents - 592.5 cents         24% - 34% higher
 (note 1)

 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).

Trading update

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
November 2018.

The financial information contained in this trading update, has not been reviewed or reported on by the
Group’s external auditors.

Tyger Valley
4 October 2018
Sponsor: PSG Capital (Pty) Ltd

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