Quantum had to kill 420 000 chickens due to bird flu, warns of egg crunch in WCape | Business

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SA's biggest egg producer, Quantum Foods, said on Tuesday its profit slump for its half-year to end March won't be as bad as previously feared in part due to demand picking up. | News24_Business

Quantum, valued at less than R1 billion on the JSE, produced more than one billion eggs in 2022 and 76 million day-old chicks, but like its industry peers, it's been hard hit by load shedding and a surge in feed costs, along with a persistent risk of disease outbreaks.

In February, the company warned it expected to swing into a loss in its half year to end-March, but it said on Tuesday it only expects its headline earnings per share to fall as much as 87%. The company booked headline earnings of about R33 million in its prior half year. Quantum said on Tuesday the improved profit guidance follows better operational efficiencies and financial performance for the layer farming business, as well as improved trading conditions for the eggs business during February and March.

Shares in Quantum were unchanged on Tuesday afternoon, but have lost more than 11% over the past year.We live in a world where facts and fiction get blurred In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.

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