Quantum Foods warns of big drop in interim earnings

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Shares in poultry and animal-feeds company slide 4.1% on news that half-year earnings will fall at least 42%

Shares in Quantum Foods fell 4.1% to R3.32 on Thursday morning after the Western Cape-based poultry and animal-feeds business said half-year earnings would fall at least 42%.

Headline earnings per share in the six months to end-March would be at least 34.5c lower than a year before, it said. That implies that headline earnings per share will be lower than 48c, versus the 82.5c reported in the prior year. In February, Quantum warned that falling egg prices and an increase in raw materials for feed would hit its earnings in the four months to January.

SA’s largest egg producer sold 847-million eggs and egg products in the 2018 financial year. It sells eggs under the Nulaid, Safe Eggs, Quantum and retailers’ own brands.

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