Exports and International
Revenue declined to
Operating income declined to
Operating margin down to
|(FY17: R4,2 billion)||(FY17: R399 million)||(FY17: 9,5%)|
|% contribution to Exports and International revenue|
- Exports business increased revenue 4% to R1,8 billion and operating income by 6% to R290 million despite challenging macro environment
- Chococam recorded 3% revenue growth in local currency in an increasingly challenging environment, assisted by growth from innovation, tight cost management and favourable procurement positions
- Deciduous fruit impacted by drought and lower volumes; operation restructured for recovery
Total revenue for the Exports and International businesses declined 10% to R3,8 billion, while operating income reduced by 32% to R270 million.
The Deciduous Fruit business was the major contributor to reduced operating income. Revenue declined 20% on lower volumes and fruit yields after the severe drought in the Western Cape. An operating loss of R128 million was incurred in the year (2017: R13 million operating income).
The Exports business produced a good performance, with revenue up 4% to R1,8 billion, despite ongoing macroeconomic headwinds. These included foreign currency shortages, weak consumer demand, as well as regulatory changes in the group’s core markets. Operating income increased 6% to R290 million.
In an increasingly challenging environment, Chococam recorded 3% revenue growth in local currency terms. Revenue in rand terms increased 7% to R882 million. Operating income rose 8% in rand terms to R159 million (4% in local currency), assisted by growth from innovation, tight cost management and favourable procurement positions.
Deli Foods recorded a further operating loss of R51 million, following a reduction in revenue of 61% refl ecting ongoing market challenges. Several cost-saving initiatives have been implemented and management changes were made in the second half.
The board has approved an Africa strategy. This builds on our core competencies and existing markets, and complements our strategic goals in South Africa.