Clover said on Thursday that it now expects
headline earnings per share (HEPS) in the year to June to drop by 65%-67% from
the 188.9c reported a year ago. In May it had warned that HEPS would fall
50%-65%.


It said selling price increases to counter cost pressures, and a cooler summer
had also affected sales volumes, except for the new yoghurt and custard
categories.

The share was priced marginally lower at R15.39 in mid-morning trade on the
JSE, suggesting that the bad news could already have been priced in.

“While the after-effects of the prolonged drought will be felt for some
time, a gradual recovery in milk and fruit production volumes is
expected,”
 the company said in the statement.

The year-end results are expected on September 12.

At 9.35am, Clover was down 0.70% to R15.50. 

 

Source: Fastmoving