DFSA CEO Louis Botha resigned due to the “enormous” conflict
between losing milk producers or losing market share during what has been a
very challenging time for the dairy industry, the company said in a statement.

DFSA chair Dirk Reyneke also resigned to allow the producer shareholders to
appoint their own independent chair and CEO.

DFSA is responsible for the procurement of raw milk as well as the selling,
marketing and distribution of the non-value-added drinking milk.

Clover said while it received no notification from the DFSA when it released a
trading update in early August, it deemed it fit to “adopt a
conservative approach and provide for the full impairment of the R439m
revolving credit facility it extended to DFSA as at year-end”.

As a result, headline loss per share was 23c in the year to June, from 64c a
year ago.

“These latest developments should not deter from the exceptional
performance delivered by Clover as highlighted in the normalised results,”
said in its statement.

Stripping out the impairments, normalised headline earnings rose 224.7%, or
R273.2m, to R394.9m, as the group recovered from the after-effects of the
drought it experienced a year ago.

Clover also benefited from lower input costs, as well as what it said were
efficiency initiatives.

“Strong growth in value-added dairy fluids, as well as fermented
products and desserts together with the rigorous series of efficiency
improvement, drives culminated in a strong ending to the financial year,”

The group declared a final dividend of 48.68c per share, bringing the total to
75.24c, which was up 210.8%.

The share price was up 2.69% to R15.29 in early trade on the JSE, valuing the
company at R3bn.


Source: Fastmoving