DURBAN – Zeder Investments fell more than 5 percent on the JSE on Thursday after the investment holding company flagged that its earnings for the six months to end August were likely to take a hit as a result of weaker performance of most investees and difficult trading conditions experienced by the food and related business sector.
Zeder said in a guidance to shareholders that its recurring headline earnings per share would decline between 60.2 and 66.3 percent to be between 3.3 cents a share and 3.9c from last year’s 9.8c.
Last year the group reported a 158 percent increase in recurring headline earnings per share, with the group attributing the increase to favourable weather conditions.
Zeder uses the Sum-of-the-Parts (SOTP) value and recurring headline earnings per share benchmarks to provide management and investors with a transparent way of evaluating Zeder’s performance.
Zeder has invested in companies like Pioneer Foods, Capespan, Zaad, Kaap Agri, Agrivision Africa and Quantum Foods.