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Johannesburg - Higher sales volumes, cost-cutting and lower input costs are some of the reasons why consumer goods group Pioneer Foods will report significantly higher earnings for the year to end-September.
Group CEO André Hanekom said Pioneer had also benefited from higher interest earned due to lower working capital expenditure.
Pioneer - whose brands include Bokomo Foods, Ceres Beverage Company and Sasko - on Tuesday advised shareholders that headline earnings per share would be 20% to 39% higher in the 2009 financial results compared with a year earlier.
Earnings per share would be between 12% and 31% higher.
No provision for fine
Defiantly, the group said it had made no provision for a possible fine levied by the Competition Tribunal, related to alleged cartel behaviour in the bread industry.
Earlier, co-accused groups Tiger Brands and Foodcorp pleaded guilty and were slapped with fines of R98m and R45m respectively, while Premier Foods earned corporate leniency in exchange for damaging testimony.
Hanekom said: "We've said we were not part of the national cartel. That's why we haven't made any provision for a fine."
In the trading statement the group said: "Pioneer Foods remains committed to the principles of good corporate governance and further entrenching its legal compliance programme."
If found guilty, Pioneer could be fined 10% of its baking division's 2007 earnings.
In late afternoon trade on Tuesday, Pioneer shares stood at 3 400c after a 3.1% gain.
- Fin24.com