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


Shareholders are reminded of the exceptional earnings achieved by the Company in the 2018 financial
year, when earnings in the egg business benefited significantly from increased egg prices due to the
national egg shortage following the outbreak of Avian Influenza in 2017. The below trading statement
should be considered in this context.

In terms of the Listings Requirements of the JSE Limited, a listed company is required to publish a
trading statement once it is satisfied that a reasonable degree of certainty exists that the financial results
for the period to be reported on next will differ by 20% or more from the financial results for the previous
corresponding period.

Shareholders are hereby advised that for the twelve-month period ending 30 September 2019, a
reasonable degree of certainty exists that:

    -   headline earnings per share (“HEPS”) of the Company will be at least 42% or 68.9 cents per
        share lower than reported in the comparable period; and
    -   earnings per share (“EPS”) of the Company will be at least 42% or 69.0 cents per share lower
        than reported in the comparable period.

This implies that for the twelve-month period ending 30 September 2019:

    -   HEPS is expected to be lower than 95.0 cents per share and EPS is expected to be lower than
        95.3 cents per share, compared to HEPS of 163.9 cents per share and EPS of 164.3 cents per
        share respectively, reported in the comparable period that ended 30 September 2018.

HEPS for the first six months of 2019 was 45.4 cents per share and EPS for the first six months of 2019
was 45.2 cents per share. Earnings expected for the second six months of the 2019 financial year,
compared to the first six months of the 2019 financial year, was impacted by:

    -   Improved levels of profitability in the feeds business, benefiting from increased volumes;
    -   Improved levels of profitability in the farming business, mostly due to improved production
        efficiencies on the commercial layer farms; and
    -   Lower levels of profitability from the eggs business due to higher feed input costs and a decline
        in egg prices resulting from an increase in supply of eggs in the South African market.

A further trading statement will be issued as soon as there is a reasonable degree of certainty as to the
likely range within which the Company’s HEPS and EPS is expected to decrease.

The results for the twelve-month period ending 30 September 2019 is expected to be published on
SENS on or about 28 November 2019.
The financial information on which this trading statement is based, has not been reviewed or reported
on by the Company’s external auditors.

Wellington
16 September 2019

Sponsor
PSG Capital

Date: 16/09/2019 11:00:00
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