Big decline in consumer goods industry
Average 15% drop in earnings of producers of food and agricultural items
Consumer goods companies have been through the mill due to a slowdown in consumer spending, with interim earnings of 13 JSE-listed companies falling an average of 15%. "If you look at SA’s growth rate 10 years ago, compared with what it is now, it is not surprising that most businesses in consumer goods aren’t knocking out the lights," said EY Africa analyst Graham Thompson. "The double-digit fall in headline earnings is quite drastic. It is indicative of how squeezed consumers actually are and of the difficult circumstances in which companies find themselves," said Thompson. According to EY, the 13 companies — Astral, AVI, Clover, Crookes Brothers, Distell, Oceana, Pioneer Foods, Premier, Quantum Foods, RCL Foods, Rhodes Foods, Tiger Brands and Tongaat Hulett — have a collective annual revenue of R180bn. Agri-processors Quantum Foods, Astral, RCL Foods and Clover all reported lower earnings before interest and taxes. For the poultry producers, this was put down to the drought, poul...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
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.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.