Clover profit jumps, costs a concern

Johannesburg - Dairy foods maker Clover Industries Limited [JSE:CLR] said on Monday full-year profit more than trebled helped by strong sales, and said it will struggle with higher costs in the coming year.

Clover, whose brands include Tropika juices, said diluted headline earnings per share for the year to end-June totalled 106.2 cents, from 33.1c a year earlier.

Clover said earlier this month it expected full-year profit to more than treble.

The company said revenue rose 6.1% to R6.5bn.

Clover said higher input costs would have the single biggest impact on its performance in the coming year. Like companies around the globe, Clover is struggling with higher commodity prices.

But Clover said inefficiencies in its supply chain meant it will likely be hit harder than its competitors by highers costs.

Clover is currently working on its key expansion project, the Cielo Blu project, which involves moving production facilities closer to milk sources in the coastal areas of South Africa.

The company declared a final dividend of 15c.

Clover listed on the Johannesburg Stock Exchange in December last year.

 
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