Johannesburg - Food and beverage company Clover's interim results for the six months ended December 31 improved by 41 percent, the company said on Tuesday.
“During this first six months we successfully recovered significant cost increases in raw milk and other costs incurred in the prior financial year. These cost increases also provide for expected inflationary cost increases during the current year,” CEO Johann Vorster said in a statement.
“As a result, our gross margins, which deteriorated sharply in the exceptionally tough second half of last year, have been restored to normal levels.
“The increased selling prices and profitability did, however, impact on volumes as expected, resulting in market share contraction across most categories.”
Revenue increased by 7.9 percent from the previous corresponding six months to R4.7 billion mainly as a result of selling price increases implemented in June.
Gross margins improved to 31 percent compared to the 28 percent reported in the comparative period.
Clover's operating margin increased to 6.9 percent from 5.4 percent.
Revenue from the sale of products increased by 11 percent to R4.1bn. Overall price inflation came to 14.2 percent.
Clover declared an interim dividend of 22.6 cents per share. This represented a 41.3 percent increase, in line with the growth in headline earnings per share over the interim dividend of 16 cents per share paid in April 2014.
Sapa