Johannesburg –
Clover industries says it will continue to pursue export opportunities in
African countries where it can better mitigate against currency risks.
The
listed company, says this is due to the secondary industry in South Africa being
too fragmented for a number of reasons.
This is
after the group reported that its profit fell 9.6 percent to R197 million in
the six months ended December. The group’s revenue grew marginally by 2.1
percent to R5.1 billion in the period.
In its
results commentary, the company says its subdued growth was due to several
issues that prevailed in the period under review.
“Clover also continued to contend with the severe impact
of the drought on maize and other crops at the beginning of the current period,
as well as substantial increases in input costs as a result of inflationary
pressure and the rand volatility.”
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The company’s earnings per share of 103.6 cents were 10.8
percent below earnings per share of 116.07 cents reported for the corresponding
period, while its headline earnings per share weakened by 14.7 percent to 99.8
cents per share.
The company says the decline in its headline and earnings
per share is due to the increase in the weighted number of shares as a result
of equity settled share appreciation rights exercised during the previous
financial year.
Headline earnings per share are seen as a key indicator
of financial performance as they strip out once-off and unusual items.
In addition, the group says it remains
committed to its medium to long term goals of investing in and growing its
value added product portfolio and its infrastructure.
BUSINESS REPORT ONLINE