Clover Industries was savaged on all fronts in the year to June. Prolonged drought was followed by a wetter, cooler summer, which affected beverage sales. At the same time, rand volatility was compounded by SA’s ugly political environment. Headline earnings plunged 65.9%, to R121.6m, as headline earnings per share plummeted 66.2%. Net financing costs rose 18%. The group has been increasing focus on value-added growth markets — including for custards, yoghurts and juices — while improving volumes in its low-margin distribution of raw, pasteurised and ultra high-temperature milk. "Clover faced an exceptionally challenging year as South African food producers and retailers had to contend with several complex and ongoing issues in the economy," Clover CEO Johann Vorster said on Tuesday. "The resultant above-inflation input costs, subdued volume growth and continued low consumer spending amid aggressive competitor pricing meant that we had to take some very tough decisions during the yea...
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