S.Africa's Pioneer Foods expects slower half-year


South Africa’s Pioneer Food Group Ltd on Friday flagged an 8 percent growth in turnover for the four months ended in January, as it battles higher food inflation from a severe drought in Africa’s most advanced economy.

Pioneer, which makes staple foods such as maize meal, pasta and juices, said it expected a muted first half in the current financial year, largely due to the drought and compared with a strong performance a year earlier.

“The maize industry has been particularly affected by the drought conditions, resulting in input costs rising 74 percent for the period, with a significant impact on Pioneer Foods’ volume,” the company said.