Johannesburg - Dairy foods maker Clover Industries Limited [JSE:CLR] expects supply problems on some of its distribution lines due to lack of capacity, until a key expansion project comes on stream.
Clover, whose brands include Tropika juices, also said in a presentation posted on its website on Friday it was investigating several new projects.
"Supply problems are expected on certain lines due to lack of capacity," it said, noting its Cielo Blu project - involving moving production closer to milk sources in coastal areas at an estimated cost of R350m - would address this issue.
"Project Cielo Blu creates efficiencies and capacity in the production and distribution network for future growth," the company said.
The company, which listed last year, expects its expansion projects to take two to three years to complete.
Clover shares were flat at R10.70 as of 08:50 GMT, compared with a 0.4% rise in the JSE All Share [JSE:J203] Index.
Clover, whose brands include Tropika juices, also said in a presentation posted on its website on Friday it was investigating several new projects.
"Supply problems are expected on certain lines due to lack of capacity," it said, noting its Cielo Blu project - involving moving production closer to milk sources in coastal areas at an estimated cost of R350m - would address this issue.
"Project Cielo Blu creates efficiencies and capacity in the production and distribution network for future growth," the company said.
The company, which listed last year, expects its expansion projects to take two to three years to complete.
Clover shares were flat at R10.70 as of 08:50 GMT, compared with a 0.4% rise in the JSE All Share [JSE:J203] Index.