SOUTH AFRICA – Clover Industries said 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 several 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 because of inflationary pressure and the rand volatility.”
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 because of equity settled share appreciation rights exercised during the previous financial year.
Headline earnings per share are 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.