Loading

Red Bull may boost Clover’s profits

March 12 2013 at 11:38am

Comment on this story

RedBull

Reuters.

Johannesburg - Clover Industries, South Africa’s biggest dairy processor, will use a new supply agreement for Red Bull and its cold-distribution business to revive fiscal second-half earnings after profit slumped.

The company began distribution of Red Bull energy drinks on March 1 and will start to sell Enterprise Foods products in June, chief executive Johann Vorster said today by telephone.

Clover is seeking to restore earnings growth after first-half profit was dragged down by higher costs for fuel and marketing.

The Johannesburg-based company is counting on its so-called cold chain, the largest in South Africa, to drive profit.

Earnings excluding one-time items declined 34 percent to 38 South African cents a share in the six months through December, Clover said in a statement.

Sales rose 11 percent to 3.98 billion rand ($436 million).

Fresh milk consumption in Africa’s largest economy contracted 3.1 percent in 2012, while demand for long-life milk grew 7.5 percent, according to Clover. - Bloomberg News


sign up
 
 

Comment Guidelines


  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

     

Join us on

 IOL-Social networks IOL-Social networks IOL-Social networks IOL-Social networks
IOL Travel

Make sure you find the best available airfares with our easy-to-use search engine.

Travel_pic_enw