S.Africa's Clover flags profit rise as heatwave lifts beverage sales - CNBC Africa

S.Africa's Clover flags profit rise as heatwave lifts beverage sales

Southern Africa

by Reuters 0

S.Africa's Clover flags profit rise as heatwave lifts beverage sales. PHOTO: Wikipedia

South African dairy producer Clover Industries expects to post higher half-year profit after a heatwave in the past few months boosted sales of juices and bottled water, the company said on Monday.

Clover, which also makes yoghurt, custard and cheese, said that headline earnings per share (EPS) for the six months to Dec. 30 are expected to come in between 4.7 percent and 9.7 percent up on the same period in 2014.

Headline EPS is the main profit gauge in South Africa and strips out certain one-off items.

Shares in Clover closed with a 10.6 percent gain at 16.40 rand.

An El Nino weather pattern that has triggered a drought in South Africa remains on track to keep conditions hot and dry for the rest of the southern hemisphere summer, the meteorological agency said last week.

"The increasing ramifications of a protracted drought across some areas of the country resulted in a shortage of feed and an increase in on-farm costs, which may necessitate further increases in selling prices," the company said.

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