AltX-listed branded food producer All Joy Foods has reported a dip in its headline earnings per share for the year to the end of February 2005 to 6,3 cents, from seven cents a year earlier. No dividend was declared for the year.
At the same time, All Joy said it has agreed to acquire 100% of the operations of Retailer Brands from the Hylton Cohen family trust and various other family trusts for a total consideration of R54-million.
Of the total, R20,5-million is payable in cash, and the balance will be funded via the issuance of 33,2-million new All Joy shares at a price of 101 cents per share.
The purchase consideration is based on Retailer Brands achieving after-tax profit of R9-million for the period to the end of June 2005 and a tangible net asset value of R16-million.
The agreement also includes the purchase of the premises of Retailer Brands for R4,55-million in cash. The acquisition of Retailer Brands is still subject to a number of conditions precedent, the company added.
All Joy late on Tuesday reported a fall in its revenue for the year to the end of February to R48,8-million, from R50,9-million a year earlier, while gross profit was down to R26,2-million from R28,5-million.
Headline earnings came in marginally higher at R2,2-million, compared with R2,1-million the previous year, but more shares in issue (at 42-million versus 33-million) at year-end diluted the group’s headline earnings per share for the year.
Net asset value stood at 34,8 cents, up from 23,3 cents the previous year.
The company attributed the 4% fall in revenue partly to additional competition from a new global brand in the marketplace, as well as competitors’ failure to increase their prices. Gross profit was placed under considerable pressure as All Joy was obliged to absorb certain cost increases, while management also decided to withdraw its export initiative as a result of the strong rand.
Looking ahead, All Joy said it is convinced it will be able to continue to grow its market share in the new year. The company will relaunch its leading brand, All Joy’s Big Red Taste tomato sauce, and start new production contracts, as well as launch its newly acquired brand Mrs Govender’s. — I-Net Bridge