Skip to main content

Pioneer Foods is in talks

| Supplier news

Pioneer Foods, home to brands such as Ceres, Weet-Bix and Liqui Fruit, has told shareholders it is in talks.

The company, which is seeking to grow its market share and is the second-largest South African food and beverage manufacturer on the JSE, has recently being buying stakes.

In November, it bought a 49.89 percent stake in Weet-Bix East Africa, which followed its August acquisition of UK-based Streamfoods for 7.5 million pounds.

On Tuesday, it said it had been approached to explore a material transaction, which could affect its shareprice.

It did not quantify whether it was being bought, or doing more buying.

Pioneer notes, however, that the corporate activity is “in keeping with Pioneer Foods’ strategic direction”.

It says it is “exploring the merits of the proposed transaction,” but that no final decision has been taken, so shareholders should be cautious when trading shares.

Earlier this year, it said group turnover gained 5.1 percent for the four months to January, mostly as a consequence of inflation. It added contracting volumes were evident in a number of categories for varying reasons.

The South African business increased turnover by 7.6 percent, while International turnover declined by 10.3 percent.

The company notes the 2016/17 financial year will be a tale of two halves for Pioneer Foods.

“The first half margin and profitability will be materially impacted by non-recurring raw material vagaries.”

BUSINESS REPORT ONLINE

Pin It

Related Articles

Woolworths recalls Country Road mugs that 'brea...

By:  Helena Wasserman – News24 Woolworths has recalled four Country Road mug lines that "unexpectedly break" when hot liquid is poured into them.

Springbok rugby star Manie Libbok partners with...

Woodlands Dairy, creators of the award-winning High Protein Recovery (HPR) drink, has announced an exciting partnership with Springbok rugby player Manie Libbok.

SA's largest poultry group plans tinned chicken...

By: Nick Wilson – News24 Astral Foods, SA's largest poultry producer, is exploring the option of trialling canned chicken as an alternative to the smaller-format pilchard and sardine products making serious inroads in the local animal protein mar...

Hassle free ox tripe, now at Woolies

Woolworths is excited to introduce its latest culinary offering: oven- and pot- ready, ox tripe. 

For the love of food: Checkers introduces a tan...

Checkers has launched a new private label offering, Foodie!, to unleash the inner chef in every home cook. Expertly crafted, Foodie! products take the hassle out of cooking, combining top-quality fresh ingredients to provide a variety of opti...