S.Africa’s AH-Vest expects loss for the year

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The South African tomato sauce and value-added products producer, also known as All Joy Foods, expects its basic earnings per share and headline earnings per share to decrease to a loss or headline loss of between 4.35 cents to 4.45 cents per share.

“The delay in the factory move and increased costs due to, inter alia, the government introducing import duties on tomato paste, raw material price increases, whilst new lines are being commissioned in the new factory are some of the main reasons for the decline in profitability,” the company said.

“Steps have been taken, where possible, to address these issues. These steps were evidenced in April 2014 and have continued after year end.”

(READ MORE: AH-Vest sees turnaround in working capital management)

The company saw revenue increase from 59.8 million rand for the six months ended 30 September 2012 to 62.6 million rand for the same period in 2013.

However, it also reported a headline loss of 5.8 million rand and a headline loss per share of 5.78 cents from a profit of 1.95 cents.

“AH-Vest has continued to operate the current Tarlton factory, to defend its shelf space, albeit at a higher cost. The new production facility being constructed at Eikenhof is expected to come on line before the end of 2014,” it said at the time.

“The board of directors are confident that any losses incurred as a result of the current factory not producing the required volumes as well as high costs of production will start reversing in the second half of 2014, with increased volumes and economies of scale expected out of the new plant.”