Quantum Foods, which produces commodities such as poultry, eggs and animal feeds, has seemingly been too bland to appeal to a market raised on richer fare in the JSE’s food sector. But the Wellington-based group on Wednesday dished up a hearty trading update that forecast markedly higher headline earnings of 156c per share for the financial year ending September. That’s a big number at bottom line – especially if one remembers that Quantum hit a 12-month low of 250c in October 2017. The trading update’s earnings forecast puts Quantum on a forward earnings multiple of 2.75 times, which suggests the market expects the new financial year to be less extraordinary. The past year saw the group’s egg business crack huge profits after production shortages (thanks to the outbreak of avian influenza) saw prices soar. The trading update notes that high levels of profitability continued in the egg business – but Quantum added that margins declined with an increase in feed costs and a (subsequen...
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