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Mon 14 Oct 2019
Close: 2 494c 
Day's move: 0c (0.00%)
Volume: 0
Trades: 0
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Revenue for the interim period went up 4.1% to R4.4 billion (R4.2 billion) whilst gross profit rose 7.5% to R1.6 billion (R1.5 billion). Operating profit lowered 7.3% to R343.5 million (R370.4 million). Profit attributable to equity holders improved to R235.9 million (R235.3 million). Furthermore, headline earnings per share increased 5.0% to 123.5 cents per share (117.6 cents per share).
Dividend declaration
Notice is hereby given that the directors have declared an interim gross cash dividend of 27.89 cents (22,312 cents net of dividend withholding tax) per ordinary share for the six months ended 31 December 2018, payable in South African currency on Monday, 01 April 2019.
Company prospects
Consumer spending is expected to remain under pressure with continued strict credit conditions and persistently high unemployment. The financial health of state owned entities ("SOEs") and specifically the financing of Eskom may have an adverse impact on the country's credit rating. Furthermore, the uncertainty in anticipation of the upcoming general elections may also have an influence on consumer confidence.
An improved outlook on inflation (if supported by a stronger rand) should provide some relief to consumers with private consumption expanding as wages increase moderately and food prices stabilise.
As long as pressure on consumer spending prevails, Clover's strategic focus on:
- growth through product and brand development;
- volume growth and market share recovery;
- distribution effectiveness and reach;
- cost management and production efficiencies; and
- win-win stakeholder relationships,
remains the cornerstone for future performance.
An extension of Project Sencillo (asset optimisation and efficiencies) and Project Meglio (recipe reformulations to reduce product unit costs) as well as the ongoing roll-out of Project Masakhane (township distribution), new product launches and product reformulations will position Clover to support cash strapped consumers with nutritious products at the optimal price points.
Clover remains optimistic that ongoing delivery against its strategic focus will ensure that its operations are sustainable despite the current stagnation in the economy and that it will be well positioned to take advantage of an economic upswing.
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| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
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