Quantum Foods reports revenue decline, legal setback in 2024
SOUTH AFRICA – Quantum Foods, a South African poultry and feed company, has reported an 8.9% decrease in revenue for the year ending 30 September 2024, totaling US$331 million
This was primarily driven by lower sales in its animal feed division.
The unit faced challenges, particularly from the effects of avian influenza, which led to a reduction in sales volumes, among other contributing factors.
Despite the revenue decline, the company posted a profit of US$12.3 million, a significant improvement compared to a loss of US$1.9 million recorded in the previous year.
In other developments, Quantum Foods revealed it had filed for leave to appeal a ruling by the Western Cape High Court regarding the reinstatement of a former non-executive director.
The court had ordered that Tanya Golden, who was removed from the board earlier this year, be reinstated, citing that her dismissal was unfair.
Golden’s removal stemmed from her insistence on reviewing a legal opinion that had been used to deny a request for an extraordinary general meeting (EGM).
The court’s decision, handed down in early November 2024, ruled in Golden’s favor, declaring the board’s actions invalid.
At the company’s annual financial results briefing, Chief Financial Officer André Muller confirmed that Quantum intends to challenge the court’s decision.
He explained that the company had received legal advice indicating that the court order would be suspended due to their application for leave to appeal.
The court had also ordered Quantum Foods to issue a public announcement on the ruling. However, no such statement has been made so far.
When questioned about this, Muller stated that the company had been advised there was no obligation to comply with this instruction under the Johannesburg Stock Exchange listing requirements.
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