Pioneer Foods released its interim results, revealing that for the six months ended March 2019, the company’s total revenue grew by 11.5% to just over R11-billion. When their recently acquired assets Wellingtons and Lizi’s are excluded, revenue from operations grew by 7.9%. The group indicates that they were hit by some cost pressures this time around, reporting operating profit down 23% at R729-million. The company’s shares also took a nosedive following the results, falling by as much as 11%.
To discuss how the ongoing drought, maize shortages and the ‘fiercely’ competitive environment has affected the company’s bottom line, as well as the cost-cutting measures it has put into place, Nompu Siziba speaks Tertius Carstens, CEO of Pioneer Food Group.