DIFFICULT MARKETS
Tiger Brands ‘solid’ but Pioneer sees profit drop
Drought hits Pioneer’s earnings, while a ‘solid domestic market’ saves Tiger Brands from weak trading conditions across Africa
Two of SA’s largest food groups have released differing trading updates in difficult markets. Pioneer Food Group said on Tuesday that it expected headline earnings per share for the six months to March 2017 to be between 38% and 55% lower than in the previous corresponding period. It blamed the drought, which affected maize and fruit, saying this should be nonrecurring in the future. On the same day, Tiger Brands said group turnover rose 12% for the four-month period ended January 2017, compared with the same period in 2016. Tiger Brands said this was driven by a "solid domestic performance", as weak trading conditions on the rest of the continent, coupled with a stronger rand, hurt exports and the international business. "The focus will continue to be on optimising margins without sacrificing market share," Tiger Brands said. "This will be … through targeted investment in marketing and route-to-market activities, as well as through ongoing cost-saving initiatives." Pioneer said hea...
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