April 6, 2020

South Africa's Quantum Foods first half-year profits could drop by 38%

The feed and poultry group said the 38% drop in half-year earnings was because of lower egg selling prices, reported Reuters.

Quantum Foods said its headline earnings per share is projected to drop between 28.1 cents to 34.9 cents in the half-year ending March 31, 2020. This is a 23% and 38% fall when compared to the 45.4 cents reported in the previous year.

The group, which owns Nulaid eggs said the lower profits were attributed to boosted egg supply in South Africa and increased costs for feed production. The company projects to report a loss when it publishes its results on May 21, 2020. Its egg business accounted for 25% of the group's revenues last year.

The group said COVID-19 has not affected its business, but they will communicate if the pandemic will impact its business operations or financial operations in the future.

On the other hand, Quantum Foods reported strong profits in its feed business as the group benefitted from high supplied volumes to its external customers and its own layer farms, which had increased layer hens in production.

Its farming business also reported strong growth thanks to higher live bird volumes provided by Western Cape broiler farming operations.

-      Reuters