Clover stuck between drought and hard-pressed consumers
The hallmark of dairy products group Clover has been the ability to defend its profitability during tough times.
However, the devastating drought, cyclical raw milk prices and waning consumer spending have put the breaks on its resilience and earnings growth.
Although its revenue for the year to June 30 advanced by 2.4% to R10 billion, its operating profit fell by 44.3% to R314.5 million. Over the same period, headline earnings per share fell by 66.2% to 63.9 cents. This level of decline in profitability was last seen in 2009 and is the antithesis of its performance last year when Clover reported record earnings in its history.
Read the full story on: Moneyweb.
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