According to Pioneer Foods 2018 financial year results, South African fruit exports benefited from poor US crops and a weak Rand.
Pioneer’s international division more than doubled its operating profit to R285m (€17.7 mln) in the year to end-September from R121.5m (€7.5 mln), helping the group’s overall operating profit grow 26% to R1.6bn (€99.4 mln).
Pioneer’s second-largest division is “groceries”, which contributed 25% of revenue and 26% of operating profit. According to CEO Tertius Carstens, “The snacking category recorded negative volume growth and a consequent decline in profitability, primarily from dried fruit and rusks. LiquiFruit, Ceres and Fruitree all gained market share, while Weet-Bix maintained its share.”
The international division grew revenue 17% to R3.2bn, contributing 16% of the group’s total, and operating profit 134% to R285m, contributing 18% of the group’s total.
“The UK posted a pleasing result despite continued input cost inflation and increasing competitive pricing in the UK breakfast category,” Carstens said. “The recent acquisition of the Lizi's brand, continued to support the growth of the branded products within the business. The Nigerian subsidiary performed well and delivered a solid set of results with noted improvement in year-on-year profitability.”
Source: businesslive.co.za
