Cape Town - In a rare piece of good news from the drought-hit agricultural sector, Quantum Foods on Thursday recorded headline earnings for the year to September of R126 million, up from R26 million in the previous corresponding period.
The company also declared a maiden dividend.
The diversified feeds and poultry business, which was spun out from Pioneer Foods and listed in October 2014, saw a 2.6 percent decrease in revenue to R3.5 billion in the period under review.
However, it noted, overall improvements were driven by a significant change in the business model as well as favourable trading conditions.
Quantum, which is now the biggest broiler contract grower in South Africa, supplying its own feed and day-old chicks, said trading conditions had improved for companies in the poultry sector.
“Maize and soya meal costs were lower than in 2014, despite substantial increases in the second half of the year, following the much lower than expected South African maize crop and the further weakening of the rand.
“Egg prices improved due to a balanced supply and demand in the market, and broiler prices increased despite the continued increase in imports.”
Headline earnings came in at 54 cents per share, up from 11 cents last time, and a maiden dividend of 10 cents per share was declared.
AFRICAN NEWS AGENCY