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Tough Trading Conditions Hit Sovereign's Earnings

by 5m Editor
24 September 2010, at 9:44am

SOUTH AFRICA - Poultry producer, Sovereign Foods reports a decrease in earnings in its annual report.

Sovereign Foods has announced that its diluted headline earnings per share for the year ended August 2010 decreased to 2.6 cents from 70.3 cents a year earlier, according to Business Report of South Africa.

Net operating income declined to 1.7 million rand (ZAR) compared with ZAR32.2 million a year ago. Revenue slid to ZAR527.6 million from ZAR544.9 million.

During the period under review, the Group said it experienced difficult trading conditions as a result of national poultry prices declining by 13.9 per cent compared to the same period last year. Pricing was placed under severe pressure due to oversupply of poultry in the market, the company it said.

Further Reading

- Go to our previous news item on the half-year report from Sovereign's rival, Astral Foods, by clicking here.