| Mon 14 Mar 2011, 7:56 | | CLR/CLRP - Clover produces solid maiden interim results following successful |
|
CLR CLRP
CLR
CLR/CLRP - Clover produces solid maiden interim results following successful
listing; interim dividend of 10c per share declared
CLOVER INDUSTRIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2003/030429/06)
JSE Ordinary share code: CLR ISIN: ZAE000152377
JSE Preference share code: CLRP ISIN: ZAE000152385
CLOVER PRODUCES SOLID MAIDEN INTERIM RESULTS FOLLOWING SUCCESSFUL LISTING;
INTERIM DIVIDEND OF 10c PER SHARE DECLARED
Adequate funding in place to roll-out Project Cielo Blu and lift margins over
the medium-term
14 March 2011 - Clover, a leading branded consumer goods and beverages group
operating in South Africa and other selected African countries, today
announced a solid set of interim financial results for the period ended 31
December 2010; its first since successfully listing on the JSE Limited in
December 2010.
Revenue increased 10.8% from R3,023 billion to R3,349 billion while operating
profit was up 43% to R176 million from R123,1 million in the comparable
period. Headline earnings from continuing operations increased 693% to R94m.
When excluding certain above average restructuring costs in the previous
year, this figures still grows by a healthy 105%. A dividend of 10 cents per
ordinary shares has been declared.
Johann Vorster, Clover`s Chief Executive Officer, said: "The impact of our
various initiatives to save costs and improve efficiencies across the Group,
combined with lower input costs and market share gains, have resulted in a
solid financial performance during the period."
Despite a modest GDP growth in South Africa during the six months to 31
December 2010, relatively low interest rates had a positive effect on overall
consumer spending and resulted in Clover sharing in the economic recovery
across all of its chosen market segments with the exception of cheese. Market
share was gained by passing savings on to consumers.
Vorster elaborates "Operationally, we continue to gain market share from our
competitors, especially in our beverage business which showed solid volume
growth of 12,4%. Benefits unlocked through increased efficiencies across our
supply chain were passed on to customers as part of Project Reset, which is
aimed at ensuring an appropriate price premium for Clover`s products relative
to its competitors.
"Clover remains the largest distributor of chilled goods in South Africa with
regular distribution to approximately 14 000 delivery points. We have more
than 600 trucks who deliver on average to eight customers per day per truck."
R575 million of capital was raised from flagship South African institutional
investors during the listing process. The capital is being deployed to
support Clover`s capacity expansion projects and the redesign of its supply
chain.
Vorster explained that this project, dubbed Cielo Blu, will see the move of
the long life products plant from Midrand to Port Elizabeth and Pinetown,
closer to milk production sources. The central Johannesburg beverages factory
will be integrated into the Midrand facility along with expansions at several
other distribution sites. Project Cielo Blu will take between 24 and 36
months to complete and the expected gain in efficiencies through these moves
will result in margins gains.
"Looking ahead, whilst the extent of the economic recovery remains unclear
and the cyclicality inherent to our business results in a typically weaker
second half, we expect to deliver a positive performance for the full year,"
concluded Vorster.
ENDS
ENQUIRIES
Clover Industries Limited +27 (0) 11 471 1702
Johann Vorster - Chief Executive +27 (0) 82 462 0083
Manie Roode - Deputy Chief Executive +27 (0) 82 466 7848
College Hill +27 (0) 11 447 3030
Morne Reinders +27 (0) 82 815 1844
Frederic Cornet +27 (0) 83 307 8286
Any forward looking statement included in this announcement has not been
reviewed and reported on by Clover`s external auditors and does not
constitute an earnings forecast.
The full interim financial statements for the period ended 31 December 2010,
as well as an analyst and investor presentation by management, will be
available on the Company`s website this morning.
NOTES TO EDITORS
OVERVIEW
Operating in one form or another since 1898, Clover has enjoyed a long and
successful history as part of the development of South Africa`s dairy and
Fast Moving Consumer Goods industry. Today, Clover is a leading and
competitive branded consumer goods and products group operating in South
Africa and other selected African countries with core competencies in:
- The production of dairy and non-dairy consumer products
- The distribution of chilled and ambient consumer products
- The sales and merchandising of fast moving consumer goods
Clover produces and distributes (for itself and other FMCG companies) a
diverse range of dairy and non-dairy consumer products to consumers and
customers though one of the largest and most extensive distribution networks
in South Africa. The business platform, created and sustained by the dairy
business, provides the perfect platform for the Group to reach an extensive
cross section of South African customers and consumers. Clover`s business
platform spans the breadth of the value chain from production to sales and
integrates key value-added support services such as logistics, supply chain
management, sales and merchandising. Clover`s market penetration (Clover
delivers to approximately 14,000 delivery points across South Africa) coupled
with its value-added services offering and high frequency of delivery,
positions Clover to exploit attractive opportunities for organic and
acquisitive growth.
Clover was converted from a co-operative society into a public company in
2003. Subsequent to the conversion, Clover has evolved into a dynamic demand-
driven branded consumer products business with attractive growth prospects.
As part of its evolutionary process, Clover implemented a capital
restructuring on 31 May 2010 which was a milestone in Clover`s corporate
development and resulted in both economic benefits and voting control vesting
in the ordinary shares. In addition, the delinking of the ordinary shares
from the delivery agreements enabled persons other than dairy producers to
acquire ordinary shares, facilitating Clover`s ability to raise equity
capital. Capital scarcity has historically been a key constraint for Clover`s
growth and development.
CORPORATE STRATEGY
Clover`s corporate strategy is to build onto existing competencies within the
Group and to establish a culture of exceptional performance with a view to
creating a platform for future market expansion.
Key to all of Clover`s activities is the expansion of capacities to share in
the strong growth in consumption in the product segments in which it has a
leading market share.
Clover has identified a unique set of strategic pillars on which the success
of the business is founded. These strategic pillars are managed and measured
by the company across all business activities by means of a Balanced Score
Card.
The strategic pillars are:
- To optimise the brand portfolio
- To simplify and reduce costs in the supply chain by changing the
operational model to fit with the business model
- To increase market share through sales and distribution by leveraging off
Clover`s strong distribution capabilities (Clover`s aim is to constantly
redesign service offerings to customers and Principals in order to increase
sales volumes and profitability of the route to market)
- To actively support the business in the most effective and efficient manner
- To constantly adapt Clover`s Human Resources capabilities in order to fit
its business model
- To successfully complete value-enhancing capital projects through proper
planning, project management and the tracking of the business case benefits
and
- to actively seek value-enhancing corporate activity
COMPETITIVE STRENGTHS
Clover is a market leader in the production, distribution, sales and
merchandising of branded consumer goods. Clover`s leading market position is
a result of its ability to leverage its core competencies across its product
portfolio sustained by:
1. An iconic South African consumer brand with market recognition and pricing
power
2. Exposure to an attractive industry with favourable fundamentals
3. Access to one of the largest chilled and ambient distribution networks in
South Africa
4. Value-enhancing optimisation and expansion projects (Project Cielo Blu)
5. Strong and unique relationships with its milk producers
6. Attractive growth opportunities
7. Dynamic management team with significant experience in the dairy and FMCG
business
BRANDS
CLOVER BRANDED CLOVER DUAL-BRANDED STAND-ALONE NON-CLOVER
PRODUCTS PRODUCTS ENDORSED PRODUCTS BRANDING
Milk Milk Beverages Milk
Fresh milk Clover Milk Aquartz Creamline UHT
UHT Milk Clover Great Taste No Capri-Sun Cheese
Steri Milk Fat Tropika Elite
Cheese Clover The One Manhattan Sacca
VP Cheese Ultramel UHT Super M Berg
Processed cheese Beverages Butters Other
Feta Clover Krush Erica Elite SMP
Mozzarella Clover Life Tulip
Beverages Butter and spreads Other
Nectar (KZN) Clover Butro butter Cream cup
Other spread Kremel
Cream Clover Mooirivier Surromel
Condensed Milk butter
Ghee Clover Springbok
Whey butter
Whey concentrate Clover Zoetvlei
Skim Milk Powder Clover Rocky Ridge
Full Cream Milk Clover Farmstyle
Powder Cheese
Rolled Dry powders Clover Tussers
Buttermilk powder
8g Butter
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 14/03/2011 07:56:24 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
