“The One Pioneer business model has been institutionalised and Pioneer Foods has emerged a more streamlined, agile and resilient business, thereby enhancing its ability to create value on a sustainable basis,” said the South Africa-based company.
“The clear and coherent corporate strategy has been embraced throughout the group yielding positive results within our local, international and joint venture businesses.”
[DATA PFG:Pioneer] added that beverage and cereal volume growth, a robust Africa and international performance and Quantum Foods’ turnaround and unbundling were just some of the features that underpinned the group’s performance.
“Notwithstanding the difficult trading environment and strong economic headwinds, the business navigated its way with precision, and delivered a pleasing set of results for the 12 months ending 30 September 2014,” it said.
The group’s revenue increased from 16.2 billion rand for the year ended 30 September 2013 to 17.6 billion rand for the same period in 2014.
“Revenue from continuing operations increased by nine per cent for the period under review – this is largely attributable to increased selling prices, exports and sales mix,” Pioneer said.
“There was a strong recovery in both maize and bread sales volume and market shares in the second half. Group revenue, including Quantum Foods, had increased by 7.5 per cent to 21.3 billion rand.”
Operating profit grew to 1.4 billion rand in the 2014 year from 1.0 billion rand in 2013 and profit before income tax increased to 1.3 billion rand from 939 million rand.
Headline earnings rose to 1.0 billion rand in 2014 from 706 million rand in 2013 while headline earnings per share rose to 575 cents from 389 cents.
“Whilst the South African economy remains vulnerable and is unlikely to recover in the short term, Pioneer Foods has been competitively repositioned to defend and grow its brands,” it said.
“The corporate portfolio will continue to be honed in an effort to sharpen the focus, appropriately direct capital allocations and, in so doing, enhance shareholder returns.”