Poultry producer profits under pressure

JSE-listed poultry and animal feed producer Country Bird Holdings (CBH) has reported group revenue for the year to June 2013 of R3,2 billion, up from R3,1 billion in 2012, and operating profit of R132,6 million, 11% lower than the R149,5 million achieved in the prior year.

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CBH CEO Marthinus Stander said that despite losses being incurred in the SA poultry division, the sustained level of profitability was primarily as a result of good performances by other African poultry and feed businesses, as well as the local feed operation.

According to Stander, prompt procurement and hedging of raw materials, as well as tight operational controls, resulted in the SA feed operation reporting an operating profit of R98,1 million, 62% higher than the previous year’s R61,6 million.

“The group recorded a credible set of results, despite the considerable problems facing the poultry industry in SA,” said Stander. “The performance from the operations outside of SA has been the best since the formation of the group.

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“The rewards for early recognition and subsequent investment in selected countries in the SADC region are becoming apparent, and these operations, together with other selected regional opportunities, will continue to be a key component of the group’s strategy going forward.”