Grains
Full results announcement on web.
SALIENT FEATURES
STRONG INCREASE IN OPERATING MARGIN TO17,7%
REVENUE GROWTH OF
5%
OPERATING INCOME UP 18% TO
R2,4 billion
Milling and baking – Albany, Golden Cloud, Ace
Sorghum beverages and breakfast – King Korn, Mabela, Morvite, Ace Instant, Jungle Oats, Taystee Wheat, Oatso Easy, Jungle Energy Crunch, Crunchalots
Rice – Tastic, Aunt Caroline, Surprise, Cresta
Pasta – Fatti’s & Moni’s
Operating margin improved 200 basis points to 17,7% benefiting from favourable procurement positions.
Performance
The Grains division delivered 5% revenue growth, and a strong increase in operating income of 18% to R2,4 billion.
Revenue in Milling and Baking rose 4% benefiting from volume growth, partly diluted by price deflation in maize and sorghum in the second half. Operating income rose 16% to R1,9 billion. The wheat-to-bread value chain benefited from good volume growth and increased realisations in the first half. The balance between margin and volumes in the second half required significant focus as competitor activity intensified.
Other Grains (Breakfast, Pasta and Rice) grew revenue 6% to R3,8 billion with strong operating income growth of 24% to R502 million. The stronger rand and improved procurement strategies contributed to margin expansion.
