Clover announces massive jump in earnings

Clover has made a big adjustment in its reported earnings during the second half of last year.

In December, Clover advised that headline earnings per share (HEPS) and earnings per share (EPS) for the six months ended 31 December 2013 were expected to be at least 20% higher than the corresponding period of the previous year.

However, it now expects HEPS for the six months ended 31 December 2013 to be between 82% and 92% higher than the corresponding period of the previous year. EPS are expected to be between 80% and 90% higher.

Clover said reasons for this included non-recurring marketing investments in new product launches made during the first half of 2013, the implementation of selling price increases in the market in January 2013 and reduced promotional activities following the selling price increases.

However, it cautioned shareholders that it did not expect this level of earnings improvement to continue into the second half of the 2013/14 financial year due to strong overall inflationary cost pressure, packaging and fuel costs and the negative impact of the high inflationary environment on consumers.