Pioneer Food revenue up 10.5% | Fin24
  • Ferial Haffajee

    Why Minister of Public Enterprises Pravin Gordhan’s patriotism call to fly SAA flopped.

  • Solly Moeng

    State capture is meant to be over, but we aren't free if its beneficiaries go unpunished.

  • South African Airways

    A business rescue practitioner has been appointed to try and save the struggling flag carrier.


Pioneer Food revenue up 10.5%

Sep 04 2012 13:13
I-Net Bridge

Company Data


Last traded 108
Change 0
% Change 0
Cumulative volume 387299
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Pioneer in second phase of BEE deal

Pioneer earnings hit by BEE deal costs

Zeder boasts major earning rise

Johannesburg - Pioneer Food Group Limited [JSE:PFG] said in a trading update before its closed period that revenue for the eleven months to end August increased by 10.5% to R16.7bn with volumes contracting by between 2% and 4% on average in the group’s product basket as consumer spend remains constrained.

Price inflation on the group’s basket of products was estimated at some 13.5% for the period under review.

Substantial increases in operating costs continued‚ most notably in electricity‚ payroll and transport costs.

Grain prices have been volatile and are trending upwards again.

Maize prices are back at historical highs following lower than anticipated crop estimates caused by severe drought conditions in the USA.

The group’s closed period is from September 15 to the publication of the annual results for the 12 months to September 30 on or about November 26.

Volumes in wheat‚ maize and bread products have improved from June 2012 through lower average selling prices and judicious price point management in the respective categories.

Pasta volumes remained stable at constant prices in the face of continued imports of lower priced products and stiff local competition.

Growing price differentials between premium Thai rice and Indian rice allowed for stable price management and volume growth in the premium category of some 10%‚ capturing some market share.

Price discounting in the non-premium products led to volume increases of some 5%.

Consistent increases in raw material costs have necessitated price increases of some 10% in wheat and maize products with effect from September 2012.

Further price increases between 8% to 12% will be implemented in October 2012 in bread‚ maize and wheaten products.

Feeds volumes were stable with price increases recovering the higher raw material cost.

The broiler industry is experiencing unprecedented price and volume pressure. Measures to contain operating cost increases and improve efficiencies could not protect margins at lower sales volumes.

Good on-farm egg performance led to volume growth. Sales prices remained flat despite raw material cost increases placing pressure on margins.

Breakfast cereals performed well with good volume growth at constant selling prices.

Volumes in Moir’s biscuits responded well to lower price points and are performing to expectation.

Better than anticipated international raisin prices and favourable currency hedges‚ have mitigated the impact on earnings of the smaller raisin crop in the current financial year.

Volumes are under pressure in the ready-to-drink beverage categories due to constrained consumer spend‚ the colder than average winter season as well as cost increases of fruit concentrates.

As a result‚ sales prices of fruit juices increased by some 12% from July 2012.

Continued fierce competitor activity in the carbonated soft drink category had a negative effect on margins and led to lower than expected volume growth in the lower single digits.

Volumes in the fruit concentrate mixtures category continued to grow by double digits as consumers supported these products as more affordable alternatives to ready-to-drink products.

The Wadeville fruit juice capacity is installed and in operation as planned.



Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote