BUSINESS DAY TV: We will be in a better position from June, Pioneer Foods says
Pioneer Foods CEO Phil Roux takes BDTV through half-year results, and the effects of a costly maize hedge
BUSINESS DAY TV: Pioneer Foods’ full-year earnings have dropped by 47% and while a confluence of factors came to bear, Pioneer was hardest hit by an unfavourable procurement position on maize that was taken in 2016. CEO Phil Roux joins us on the line now. Phil … So yes, a host of external factors came to bear on your numbers but getting most attention today, a maize deal that didn’t really swing in your favour resulting in you paying more than you should be for maize right now. Was supply at that much risk a year ago that you needed the security you bought? PHIL ROUX: Thanks very much for the opportunity to share our views with you. Twelve months ago we were facing an unprecedented situation, the worst drought in 30 years, as a market leader with the White Star brand, the main staple, which is more than 4-million tonnes in SA, so an absolutely essential food for all South Africans. And, as a Board we considered our circumstances: the price was more than R5,000 per tonne, the currenc...
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.