Quantum Foods earnings tumble almost 80% as input costs, avian flu bite

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Chicken and egg producer QuantumFoods reported that headline earnings fell over 70%, after a year of steep input costs, avian flu outbreaks and rising energy costs. Moneyweb QuantumFoodsEarnings NtandoThukwana

Chicken and egg producer Quantum Foods reported that headline earnings fell over 70%, after a year of steep input costs, avian flu outbreaks and rising energy costs. On Friday the animal feeds and broiler chicken company said headline earnings per share crashed 78% to 12 cents per share in its 2022 financial year to end-September. Headline earnings fell 73% to R28 million, compared with R102 million in the prior period.

“Insurance for the HPAI outbreak on the Lemoenkloof Farm was limited to the risk associated with direct losses resulting from the culling of infected flocks and did not cover the further effect of lost production and lower sales volumes experienced,” said Quantum Foods. Its eggs business was also hit by reduced selling prices for eggs and reported lower margins on the back of a weak consumer environment. It also had lower demand for layer stock, the company said.

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