The foods and beverages group also reported a 23.1 per cent fall in its earnings per share to 30.8 cents.
The company reported a headline earnings per share plunge of 17.2 cents, a drop of 14.3 per cent comparative year.
“Headline earnings decreased by 12.8 per cent from 214.9 million rand at 30 June 2013 to 187.5 million rand for the year under review,” Clover said in a statement.
“This decrease in headline earnings constitutes a 19.9 per cent reduction in headline operating profit.”
The group attributed its headline earnings decline to the operating environment.
“We experienced strong overall inflationary cost pressures, especially on packaging and ingredient costs (which are dollar-based).In addition, we increased the price we pay for raw milk to ensure on-farm sustainability,” reported the company.
(READ MORE: Clover acquires Dairybelle’s business)
[DATA CLR:Clover Industries Limited]added that lower sales volumes resulted from further selling price increases.
The group reported a revenue increase to 8.5 billion rand from 7.8 billion in the same comparable period last year.
Clover’s operating profit was lower at 282 million rand from 371.6 million rand in 2013.
The company said it was not optimistic about the future outlook due to a slim growth in the economy.
“We expect the current subdued operating environment to continue for the foreseeable future, given the current cycle of interest rate increases, a low growth economy, rising unemployment and the aftermath of the protracted labour actions that have to work their way through the economy,” said Clover.
However, the company says despite some of the most challenging trading conditions in recent history, the group will continue to deliver on its targets which include volume and market share growth, the reduction of overall costs, especially in the supply chain.