South Africa poultry and egg provider Quantum Foods has warned of a possible loss linked to an outbreak of hen flu.
The Wellington-based business mentioned extremely pathogenic avian influenza (HPAI) has been detected at “several” broiler farms within the provinces of Gauteng and North-West, which is positioned on the border with Botswana.
As of 21 September, Johannesburg-listed Quantum Foods mentioned the monetary impression on its rooster flock is at the moment estimated at R106m ($5.5m) as the corporate pointed to prospects of an earnings per share loss for the annual reporting interval ending this month.
Around 1.5m layer and breeding birds have to this point been contaminated with HPAI, Quantum Foods mentioned, including the monetary impression of hen flu on the nation’s poultry trade “is not yet known”. Much will rely upon the quantity of available eggs going ahead, the Nulaid model proprietor mentioned.
Quantum Foods’ farm in Lemoenkloof, Western Cape, was additionally hit by hen flu in April, affecting round 420,000 layer hens.
However, the corporate added in a inventory change buying and selling update: “The impact of this further HPAI outbreak on the company’s operations to date appears to be confined to the northern parts of South Africa and the company’s operations in the Western Cape and the Eastern Cape are currently unaffected.”
The business, which claims to be South Africa’s largest egg provider, warned each headline earnings per share (HEPS) and earnings per share would possible flip to a loss within the yr to 30 September due to the HPAI outbreak.
HEPS of 14.1 South African cents reported final yr is anticipated to be worn out, or 100% decrease, Quantum Foods defined. Similarly for EPS, which may even be “at least” 100% decrease than the 12 cents print within the earlier fiscal interval.
“A further trading statement will be published as soon as there is a reasonable degree of certainty as to the likely range within which the company’s HEPS and EPS is expected to decrease,” Quantum Foods added.
Quantum Foods’ bottom-line earnings have been additionally pressured within the yr to 30 September 2022. HEPS was down from 52.2 cents within the corresponding interval of 2021 and EPS declined from 53.9 cents.
Revenue final yr was R6.02bn, up 11%, however working revenue dropped 78% to R32.5m.
Profit earlier than tax was R20.3m, sliding from R142.3m a yr earlier. Net revenue sank to R23.8m from R105.8m.
