Deflation puts a dent in Pioneer Foods’ turnover
But the company says sales volumes picked up, and costs were low, which bodes well for first-half profit. Deflation in soft commodities weighed on Pioneer Foods’ sales in the December quarter.
Turnover in the three months to December shrank at least 2.4% as prices in some maize and wheat product categories declined. But total volumes rose 5.2%, the company said in a trading update on Friday.
The price deflation followed low grain prices, as a result of a bumper harvest in 2017. SA harvested a record 16.7-million tons of maize over the period.
Pioneer Foods competes with Tiger Brands and AVI for space on supermarket shelves.
Revenue from the group’s international business grew 19.5%, the company said in Friday’s statement. Excluding the Nigerian business, revenue grew 12%.
Despite falling turnover, the groups said improved sales volumes and lower input costs, particularly for maize, would support first-half profits, compared with a year ago.
The company said it had put in place contingency measures to soften the blow of the drought in the Western Cape, where it has "considerable" operations.
News Category
- International retailers
- On the move
- Awards and achievements
- Legislation
- Wine and liquor
- Africa
- Going green
- Supplier news
- Research tools
- Retailer trading results
- Supply chain
- Innovation and technology
- Economic factors
- Crime and security
- Store Openings
- Marketing and Promotions
- Social Responsibility
- Brand Press Office
Related Articles
![](/templates/yootheme/cache/45/Mandela_walk_run_small-45f3e6a3.png)
Vote with your feet on 20 July 2024 – join the ...
![](/templates/yootheme/cache/c4/Shoprite_salesclerk_small-c47e07c2.jpeg)
From teen salesclerk to retail success: Durbani...
![](/templates/yootheme/cache/32/Pick_n_Pay_Lamb_small-321340aa.jpeg)
Pick n Pay strengthens support for local family...
![](/templates/yootheme/cache/5e/Engen_CSI_small-5e460fae.jpeg)
Engen Partners with Gift of the Givers to Aid C...
![](/templates/yootheme/cache/f1/Checkers_Meals_small-f1edbfed.jpeg)