In its trading update, the company said earnings per share (EPS) is expected to rise to 50.0 cents from a loss per share of 3.6 cents. The loss per share and headline earnings per share were based on Quantum Foods' actual number of shares in issue on the date of listing on the JSE on October 6, 2014, being 233,248,590 shares.
Quantum Foods said lower maize and soya meal costs had benefited both broiler and egg production expenses and contributed to the improved results for the current financial period. Further contributions to the improved results for the current financial period were the increases in egg selling prices and volumes of layer livestock sold, the company said.
"Quantum Foods' broiler business also returned to profitability due to the re-engineering of the Western Cape business model, as well as improved volumes and cost efficiencies at the company's Hartebeespoort abattoir," it said.
Quantum Foods also said the proposed acquisition that will see Quantum Foods buy the Tydstroom abattoir business in Hartebeespoort from Sovereign Food Investments and Crown Chickens had not been approved by the relevant competition authorities
"Should Competition Commission approval be obtained before 30 September 2015, the impact of the transaction on the earnings per share and the headline earnings per share of the company will be included in the updated trading statement," Quantum Foods said.
Quantum Foods' financial results are expected to be released on or about November 26.
Source: INET BFA
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