Johannesburg - Clover Industries' share price got battered on Wednesday on the JSE with its shares nosediving 7 percent after the company reported uninspiring trade update results for the six months ended December, with festive period performance adding to the group’s woes.
However, the group said it had pinned its turnaround hopes on the restructuring process the company had embarked on.
All the firm’s categories, with the exception of UHT and fermented products, reported lower volumes than in the comparative six months.
It attributed this to negative consumer sentiment and wet and cooler summer conditions compared with the heat wave in the comparative period.
Clover said yesterday in its update statement that its December volumes had tracked markedly lower than the comparative period.
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It had expected its headline earnings for the six months ended December to be between 14.6 percent and 24.6 percent lower and earnings to be between 12.1 percent and 22.1 percent lower than in the comparative period.
Headline earnings a share for the period under review were anticipated to be between 18.33c and 30.02c lower than the 116.96c reported in the corresponding period. Earnings a share were expected to be between 15.36c and 26.96c lower than the 116.07c reported in the comparative period.
The company said it had also incurred losses in implementing its restructuring strategy, but remained confident it would pay dividends.
“Once-off restructuring costs related to the integration of the company’s City Deep distribution facility into the Clayville distribution facility," the company said.
Clover shares closed the day 6.62 percent down at R17.50.