Pioneer Foods sees 9% revenue growth

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The food, beverage and related products producer and distributor saw its revenue, from continuing operations, increase from 15.5 billion rand for the period ended 30 September 2012 to 16.9 billion rand for the same period in 2013.

“Significant change is under way at Pioneer Foods to position the organisation more competitively. Notwithstanding the aforementioned, the organisation has shown resilience by producing a fair set of results in a constrained and highly competitive market environment,” said [DATA PFG:Pioneer Food Group Limited] chief executive Phil Roux.

“Certain categories excelled while others encountered stronger headwinds. That said, clarity of strategic direction enabled by a more efficient business model should bode well for medium term prospects for the organisation.”

Revenue rose 10 per cent to 20.5 billion rand and operating profit was up slightly from 1.04 billion rand for the 2012 year to 1.05 billion rand in 2013.

“Operating profit has been impacted by non-recurring reorganisation costs of 69 million rand, as well as a share-based payment charge of 146 million rand, relating to the Phase I B-BBEE transaction, as a result of the share price increasing in the reporting period,” Roux said.

Profit before income tax increased from 930 million rand in 2012 to 943 million rand in 2013, headline earnings increased from 606 million rand to 704 million rand and headline earnings per share was up 15 per cent to 389 cents.

“The macro-economic outlook remains bearish in SA and, as a consequence, food and beverage categories will remain under pressure and are likely to yield limited growth in real terms. That said, Pioneer Foods is undergoing significant internal change in order to adapt its strategy and business model to compete more effectively,” said Roux.