South Africa‘s Quantum Foods said on Wednesday it expects annual profits to triple on steady earnings from its eggs business and compensation for losses incurred from an Avian flu outbreak, sending its shares up 7%.
The animal feed and poultry company said headline earnings per share would increase by 219% to 156.3 cents per share for the year ending June 2018, compared with 49 cents per share in the corresponding period of the previous year.
Headline earnings – South Africa‘s most widely watched profit gauge – strip out certain one-off items.
The company said earnings were lifted by steady revenue in its eggs business, an insurance compensation of R22 million ($1.5 million) for losses incurred from the Avian flu outbreak last year and better performance by its units in other African countries such as Uganda and Zambia.
South Africa‘s poultry industry incurred losses and job cuts after an outbreak of avian flu in June last year.
Shares in the company trader 6.17% higher at R4.30 by 09:20 GMT.
Quantum is due to report its full year results on November 29.