Quantum increases profit estimates

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Quantum increases profit estimates

Published Date: 2018-05-04 | Source: Stephen Gunnion | Author: Stephen Gunnion

Quantum increases profit estimates

The poultry producer has forecast a massive rise in first-half earnings as the winds turn for the industry

Quantum Foods is the latest poultry group to benefit from falling feed costs. Following an upbeat trading statement from Astral Foods earlier this week, Quantum has also upgraded its latest financials. In March it forecast a rise of up to 516% in first-half headline earnings per share. Now it expects them to be up by between 556% and 575% from a year ago. Earnings per share for the same period will be up to 503% higher.

While yesterday's updated trading statement gave no further detail, a four-month update in February said the group had benefited from favourable feed costs, offset partially by further Avian Influenza losses in the Western Cape layer farming operations. Higher external feed sales helped compensate for a decline in the feed requirement from the group's farming operations as a result of lower hen numbers due to influence and in the broiler farming operations. While fewer hens resulted in lower egg volumes, average selling prices increased by close to a third.

Outside of South Africa, production costs at its three other African businesses also decreased following the decline in feed raw material costs.

Quantum expects to release its results on 24 May. Its shares rose 5.4% to R4.90 yesterday.

& prospects statements will be telling to progress H2 2018

-- Small Talk Daily (@SmallTalkDaily) May 3, 2018


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