Pioneer Foods Group says it expects headline earnings per share in the six months to March to be 38%-55% lower than the year before. In an updated trading update on Tuesday, the food producer blamed the drought, which inflated grain prices. This was compounded by a weaker rand. The raisin crop shortfall, higher juice concentrate costs, volatile currencies and weak consumer demand in Africa hurt its international business, said Pioneer. The owner of brands such as White Star expects raw material costs to drop thanks to a maize harvest expected to be materially higher this year than last.

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.