| Wed 26 Jan 2011, 16:01 | | CBH - Country Bird reports significant growth at interim stage |
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CBH
CBH
CBH - Country Bird reports significant growth at interim stage
Country Bird Holdings Limited?
(Incorporated in the Republic of South Africa)
Registration number: 2005/008505/06?
ISIN: ZAE000094835?
JSE Share code: CBH?
("CBH" or "the group")
COUNTRY BIRD REPORTS SIGNIFICANT GROWTH AT INTERIM STAGE
Country Bird Holdings (CBH) has announced a 37% rise in operating profit to
R112,8 million for the six months ended 31 December 2010. This compares with
operating profit of R82,4 million for the comparable period in 2009.
Revenue was up 13% to R1,42 billion for the period (2009: R1,26 billion),
while gross profit increased by 20% to R183,8 million (2009: R152,6 million).
Profit before income tax rose 63% to R91,4 million (2009: R56,1 million)
primarily as a result of a reduction in finance costs through reduced
interest rates and strict financial discipline, specifically in respect of
capital expenditure. The net increase in cash and cash equivalents for the
period was R67,5 million.
Commenting on the results, Group Financial Director Robbie Taylor says the
improved results are attributable to a combination of factors, notably good
performances in the African businesses, a strong showing from the Animal
Nutrition Division and an overall improvement in market conditions.
The South African Poultry Division reported an 8% increase in volumes sold
for the period. This, together with a 9% improvement in the cost of feed,
improvements in operational efficiencies and disciplined cost control, more
than offset the 2% reduction in realisations of the previous year. Operating
profit improved 8% to R73,1 million (2009: R67,6 million).
The African Poultry business, which comprises a grandparent breeding
operation in Zambia and a parent breeding operation and broiler operation in
Botswana, saw revenues decrease slightly by 3%. However, improved market
conditions in Zambia, driven by favourable economic conditions, resulted in a
return to better margins and operating profit was R9,3 million (2009: R0,7
million).
As regards animal nutrition, "Nutri Feeds reported an improvement of 16% in
volumes sold for the period under review," says Taylor. "As a result of input
price reductions, revenues increased by only 5%. However, volumes are
approaching optimum and the resultant efficiencies improved the operating
profit to R21,0 million from R6,65 million in 2009."
Regarding Animal Nutrition in other African countries, Taylor says the mills
in both Zambia and Botswana are now well established and performing to
expectation. Revenues for the combined operations increased 23% to R146,6
million (2009: R119,0 million) and the focus on operation efficiency and
procurement practices yielded a 64% increase in operating profit to R11,5
million (2009: R7,0 million).
New Red Meat product launches and penetration into new markets saw volumes
increase by 23% and realisations increase by 2%, giving a total increase in
turnover of 25% to R199,9 million (2009: R159,9 million). However, margins
were under intense pressure resulting in an operating loss for the period of
R2,1 million (2009: R0,6 million profit).
Looking ahead, Taylor says that realisastions for the South African poultry
industry have shown encouraging signs of recovery in recent months.
"Continued efficient grain procurement, further improvements in operational
efficiencies and cost control should result in improved operating margins,
while the marketing focus will remain on driving exports and the quick
service restaurant business.
"In the South African feed business, the scientific development of bespoke
feed rations has assisted Supreme Poultry and its customers to achieve
outstanding growing results. This has attracted new customers, taking
production up to an optimum level of efficiency due to capacity utilisation.
"The African Poultry operations have returned to profitability and continued
focus on efficient production remains the priority," concludes Taylor.
In line with the group`s dividend policy of three times cover, a capital
distribution of 11,1 cents per share has been declared for the period,
payable on 16 May 2011.
Ends/
About Country Bird Holdings Limited (CBH)
CBH, which listed on the JSE in May 2007, is an agricultural group comprising
integrated poultry, stock feed and beef businesses in South Africa, trading
as Supreme Poultry, Nutri Feeds and Long Iron Meats respectively, as well as
poultry breeding, broiler and stock feed operations in the southern African
region, trading as Ross Africa and Master Farmer. CBH is currently active in
South Africa, Botswana and Zambia.
Issued for: Country Bird Holdings Limited (CBH)
Contact: Robbie Taylor, Group Financial Director:
011 778 0658 / 082 809 9506
Fax No: 086 660 0917
Email: Robbie@countrybird.co.za
Website: www.cbh.co.za
Issue by: CBH Corporate and Investor Communications
Contact: Tish Stewart: 082 4436399 / 011 442 5536
Fax No: 011 447 9317
Email: tishstewart@mweb.co.za
Date: 26 January 2011
Sponsor: Investec Bank Limited
Date: 26/01/2011 16:01:01 Produced by the JSE SENS Department.
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