Pioneer Foods' full-year profit plunges on lagging effects of drought
Pioneer Foods sees a recovery in the 2018 financial year after disappointing results in the year to September. The food and beverage manufacturer attributed its negative performance to constrained trading conditions, price hikes and an unfavourable procurement position in the first half of the financial year, following the severe drought that hit the region in the 2015-16 season. The group posted a 49% drop in profit due to high maize prices during the first part of the year after the drought. An El Niño-induced drought in southern Africa crippled production of maize, sugar and other agricultural products. On Monday, CEO Tertius Carstens said while the company had suffered setbacks during the trading period, it would see volume recovery in 2018. Given the maize price deflation of about 30% coupled with increased maize milling of about 8%, Pioneer Foods was already participating in the recovery trend experienced by the industry in October. "We are in a far more competitive position t...
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