Quantum Foods earnings leap on lower input costs
Quantum Foods’s share price soared more than 17% after it announced strong full-year financial results. The company, which produces and sells poultry products, said on Thursday group revenue jumped 4% to R4bn in the year to end-September. The share price, which has gained 25.85% since January, rallied 10.83% to R3.48. The South African operations grew revenue 2.5%, while the rest of the African operations were up 27.4%, helped by the full-year inclusion of the Galovos egg business in Mozambique, as well as increased egg volumes sold from the Mega Eggs farm in Zambia and the Masindi egg farm in Uganda. Quantum attributed the overall positive performance to increased summer rain, which led to record harvests and a significant dip in feed prices. Gryphon Asset Management equity analyst Casparus Treurnicht said that the record maize crop lowered input costs. Quantum said the crop harvested in SA should cause a large carryover of maize stock into the next season. Even with average summer...
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