Packaged goods company Pioneer Foods on Monday reported a three percent increase to R20.2 billion in revenue for the year ended September 30, while volumes were up four percent, including acquisitions.
Trading conditions reflecting weaker levels of consumer spend became more challenging in the second semester, with rising input costs exacerbated by the weakening rand and steady oil price increases.
This required corrective price adjustment on a phased basis across categories which the company said was expected to continue in the next reporting period.
Headline earnings per share increased by 33 percent to 545 cents per share and the company declared a gross final dividend of 260 cents, unchanged from last year.
Pioneer Foods said there was a high probability of inflationary pressure driven by continuing rand weakness and increased international oil prices.
“We thus anticipate muted consumption growth to be a short to medium term reality,” it said. – African News Agency (ANA)