Eggs help Quantum leap back into profit
The poultry producer declares its first interim dividend, but is more cautious for second-half trading
Quantum Foods, a producer of poultry, eggs and animal feed, has declared its first interim dividend notwithstanding a more cautious outlook for second-half trading. Since listing in 2014, Quantum has traditionally declared a single dividend at financial year end. But a cracking performance from its egg division saw net cash flow from operating activities surging to R204m, prompting the first half-yearly payout for the six months to end March to shareholders. Quantum’s cash in hand topped R359m — equivalent to 162c/share. The interim dividend of 20c/share does, however, reflects some caution from Quantum directors — covered more than four times by headline earnings of 82.5c/share. Vunani Securities analyst Anthony Clark said investors should not expect a near doubling of full-year earnings as input costs were rising and egg prices declining. “There must, though, be a possibility of a special dividend at financial year-end as Quantum does not need to retain much cash with its capital ...
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