A move by Clover South Africa to relocate its processing plant from Gauteng to Port Elizabeth has paid off for the country’s largest dairy distributor.
It said yesterday it expected its headline earnings per share for the half-year ended December to jump by at least 82% compared to the same period the year before.
The sizeable rise is also due to other once-off elements such as cost-saving initiatives and exchange-rate profits made by certain African subsidiaries due to the weakening of the rand.
The company said increases were attributed to:
Non-recurring marketing investments in new product launches made during the first half of last year;
The implementation of price increases last January and again early in the current reporting period; and
Reduced promotional activities following the price increases and “the positive contribution of project Cielo Blu”.
Project Cielo Blu started when Clover SA listed in 2010 and had the cash to tackle logistical and distribution inefficiencies by investing in the expansion and relocation of its infrastructure. – The Herald