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Clover sees profit decline

Companies
Durban – Clover said on Monday it was expecting a decline of between 50 percent and 65 percent in headline earnings per share (Heps) for the year to the end of June.

This is in part because of the prolonged drought and the volatility of the rand, which had a negative impact on its results during the period.

The group said that Heps are expected to be between 66.12cents and 94.42c a share, down from 188.9c in June last year.

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Picture: Nicholas Rama

“As expected, several of these challenges continued to impact the business during the second half of the financial year. While many factors were beyond the company’s control, certain tough strategic decisions needed to be made at the expense of this year’s results, but in aid of longer-term sustainability,” the group said.

Clover increased its selling prices during the period to recover higher input costs.

Read also: Clover to pursue export opportunities

However, there was pressure on volumes and market share, because consumer sentiment was subdued.

The group is expecting earnings per share to decline by between 40 and 55 percent.

The company expects to release its results on or about September 12.

BUSINESS REPORT

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