TRADING UPDATE
Agribusiness Quantum to post cracking results
A powerful interim trading statement saw shares in agribusiness Quantum Foods — SA’s largest egg producer — scramble to a high. On Wednesday, the poultry, eggs and animal feeds producer reported that headline earnings would surge more than 500% to 76c per share in the six months to end-December, with its egg business putting in a star performance. Shares in Quantum, which was unbundled from consumer brands giant Pioneer Foods in 2014, reached 500c in fairly vibrant trade. They closed at 405c on Tuesday and were trading at 270c less than six months ago. The detailed trading statement followed an earlier business update in February that advised shareholders that the egg business had significant tailwinds. Average selling prices per dozen eggs had increased 32% in the first four months of the financial year, with production costs lower due to a decline in feed costs. Quantum was also helped by lower egg sales volumes as a result of avian influenza production losses, which firmed prices...
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