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Johannesburg - South Africa's Pioneer Food Group [JSE:PFG] on Monday posted a 62% drop in full-year profit, hit by fines from the country's competition watchdog, but said it expects to return to growth in the current financial year.
The company, which makes bread, breakfast cereal and juices, reported headline earnings per share of 133.5 cents for the year to end-September, compared with 355.4 cents a year earlier.
Pioneer said earlier this month it had agreed to pay R500m in exchange for having investigations against it related to unfair competitive practices dropped.
The company had also agreed to a reduction in its gross profit by R160m over a defined period for a selection of wheaten flour and bread products and to increase its capital expenditure by R150m.
Revenue fell 3% to R16bn, weighed down by lower prices.
Pioneer, which said last week it would buy wine and spirits maker KWV for R828m to diversify its revenue, said it expects to return to growth in the current financial year.
Pioneer shares have gained nearly 25% so far this year, compared with a 13% rise in Johannesburg's All-share Index.
The company, which makes bread, breakfast cereal and juices, reported headline earnings per share of 133.5 cents for the year to end-September, compared with 355.4 cents a year earlier.
Pioneer said earlier this month it had agreed to pay R500m in exchange for having investigations against it related to unfair competitive practices dropped.
The company had also agreed to a reduction in its gross profit by R160m over a defined period for a selection of wheaten flour and bread products and to increase its capital expenditure by R150m.
Revenue fell 3% to R16bn, weighed down by lower prices.
Pioneer, which said last week it would buy wine and spirits maker KWV for R828m to diversify its revenue, said it expects to return to growth in the current financial year.
Pioneer shares have gained nearly 25% so far this year, compared with a 13% rise in Johannesburg's All-share Index.
