Pioneer Foods posted an increase in full-year profit, the JSE-listed food manufacturer said on Monday.
Its results for the year ended September 30 2009 showed that its headline earnings per share rose 22% to 355 cents while revenue was up 9% at R16,3-billion.
The group is best known for its Sasko, Bokomo and Ceres brands.
”We achieved this satisfactory set of results in a deflationary environment where in the second half of the year, selling prices in key categories either stabilised or contracted,” said managing director Andre Hanekom.
”Our earnings growth for the year, though relatively strong, basically brings us back to even keel after the slow or declining growth we showed in recent reporting periods,” he added.
Hanekom said an ”excellent” performance from Sasko had improved the group’s capacity utilisation with increased sales volumes in maize products in particular, which led to margin growth.
Looking ahead, he added that Pioneer Foods expected ”modest earnings growth” in the first half of the current financial year, depending on the collective impact of declining raw material prices, increasing labour, transport and electricity costs, shifting consumer patterns shaping volume growth and continuing deflationary pressure on selling prices.
A dividend of 89 cents per share was declared.
This was 35% higher than last year’s 66% per share dividend. — Sapa