The group’s decision to cut back on broiler production contributed to improved results in the second half of the year following a loss of R109 million by the poultry division.
Speaking at the release of the company’s results, CEO Chris Schutte said the company had been expecting depressed results from the poultry division. “However we were anticipating some assistance from government in revising import tariffs in order to level the playing field. Unfortunately finalising these took longer than expected and, going forward, the zero-rated poultry imports from Europe remain a threat.”
All the same, the poultry division’s operating loss had improved from the R117 million loss reported in the first half of the year. This was despite a 14% increase in feed input costs, record poultry imports from Brazil and Europe in October and November 2012, and intense promotional activity as the industry endeavoured to clear high stock levels, said Schutte.
The poultry division reported a 3% increase in revenue to R6 billion, on the back of an 8,4% improvement in poultry selling prices and a 5,4% decrease in sales volumes. Operating profit in the feed division increased by 15% to R331 million and other Africa operations delivered operating profit 19% higher to R45 million.
