Fast-moving consumer goods company Premier says it expects another strong earnings performance in the six months to end-September, with profit set to climb as much as 30% even as revenue growth slows due to softer commodity prices.
In a trading statement on Tuesday, the food producer said headline earnings per share (HEPS) are projected to rise by between 20% and 30% to between 526c and 569c.
The group guided for only mid-single-digit revenue growth, citing the effect of deflation in soft-commodity prices, but stressed cost control and efficiency gains had more than offset this drag.
“Premier’s disciplined focus on appropriate capital investment, margin management, operational efficiencies and cost-saving initiatives has sustained the compound growth in earnings achieved since listing,” the company said.
The results for the half-year will be published on or about November 11.
Premier’s share price rose the most in five months, ending 4.44% higher at R146.93.
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