Pioneer Foods said on Monday it expected lower earnings and revenue for the year to September, following weaker trade volumes, price increases and more intense competition. The group owns brands such as Sasko, Bokomo, Marmite, Redro, Liquifruit, Moir’s, Ceres and White Star maize meal. Pioneer said it expected its headline earnings per share to drop 48%-56% year on year to between R3.98 and R4.70. Revenue fell 4%-6% from the previous year’s R20.6bn. SA’s third-largest food producer and processor suffered losses in its fruit export, beverage and maize divisions due to factors including deflation, volume declines and resistance to price increases. "The unfavourable maize procurement position entered into in 2016 muted the performance of the maize category until June. Maize has since been milled at market-related cost," the company said. The group’s unfavourable maize hedge position in Botswana also played a role. Pioneer cited its inability to adjust its cost base to the reality of la...
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