Investors shrug off Quantum Foods’ profit warning
The market’s reaction was muted, implying that the fall had been expected
Quantum Foods, the Western Cape-based poultry- and animal-feeds business, said on Thursday that its half-year earnings would fall at least 42%. The group said headline earnings per share (HEPS) in the six months to end-March would be lower than 48c, compared to the 82.5c reported in the prior year. But the sharp decline in profits was no surprise, said independent analyst Anthony Clark, who expects HEPS for the full year to September 2019 of between 70c and 80c. This implies a decline of up to 57% from the year before. At midday on Thursday, Quantum’s shares were trading 1.7% lower at R3.40.
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