JOHANNESBURG (Reuters) – South African food producer Premier Group posted on Tuesday a rise of 32.4% in half-year profit at the upper end of its forecast range, boosted by cost-saving initiatives in a challenging operating environment.
The 200-year-old company which listed last year said its headline earnings per share (HEPS)- a profit measure – grew to 438 cents for the six months ended Sept.30 from 331 cents a year ago.
The maker of Blue Ribbon bread and Snowflake flour has invested in its manufacturing capabilities by building high-volume bakeries and other modern equipment that have improved quality and cut production costs. Group revenue grew marginally by 3.7%, to 9.7 billion rand ($539.38 million), despite a challenging environment marred by “high interest rates, soft commodity volatility and a depressed
consumer environment,” the company said in a statement.
Operating profit increased by 17.3% to 945 million rand, benefiting from the suspension of load-shedding, which further improved operations in Premier’s core categories.
The group, which vies for market share with rivals such as Tiger Brands, Pioneer Food and RCL Foods, recently bought a 30% stake from rice importer Goldkeys International, to gain exposure to the market in the staple.
($1=17.9836 rand)
(Reporting by Sfundo Parakozov; Editing by Clarence Fernandez)
