JOHANNESBURG  - Diversified feeds and poultry business Quantum Foods said on Wednesday it expected headline earnings per share (HEPS) for the twelve months ending September 30 to be at least 219 percent or 107.5 cents higher than reported in the same period last year.

"This implies that for the twelve months ending 30 September 2018 HEPS is expected to be at least 156.5 cents per share, compared to HEPS of 49.0 cents per share reported in the comparable period," it said in a trading statement.

Quantum Foods reported continued high levels of profitability in the egg business, although margins declined with an increase in feed costs and a decline in egg prices.

It said earnings were also impacted by proceeds of R22 million received from insurers compensating partly for the Avian Influenza losses that occurred in 2017 and in the first half of 2018, slightly weaker margins in the feeds and broiler farming businesses and improved contribution from the other African operations benefiting from the favourable trading conditions.

"Shareholders are advised that no further incidents of Avian Influenza have been experienced," it said, adding:

"Shareholders are reminded that an outbreak of Avian Influenza before the end of the reporting period could have a significant impact on the expected HEPS and EPS reflected in this trading statement."

Quantum Foods is expected to publish its results on November 29.

- African News Agency (ANA)