Clover Industries announces profits up 19% for H2 2017

Mar 8, 2018

Clover Industries, Africa
South African dairy company Clover Industries this week announced an increase in profit of 19% for the six month period between July and December 2017.

Although Clover’s primary industry is the production & distribution of dairy products, it says its growth in revenue was driven by the launch of other products, such as olive oil and soy milk. Retail sales growth in the second half of 2017 was higher than expected and led by Black Friday promotions in November.

Revenue increased 2% from the corresponding period in 2017 to R5.1bn ($380.6m), which the company has attributed to  higher prices and inflation of 10.6% in H2 2017. Clover has said that it is in the process of restructuring its current operations to give effect to its stated objective of developing higher margin, value added products, with the aim to eliminate its exposure to the cyclicality of its low margin business.

Following a drought in South Africa that has so far lasted three years, Clover expects a recovery in milk and fruit production. South Africa has declared a national disaster in its western and southern regions, including Cape Town. Water is currently due to run out in July 2018, revised from an estimate of April just six weeks ago.

Clover was established in 1898 as Natal Creamery Ltd. It was converted into a public company in 2003 and has been listed on the Johannesburg Stock Exchange since 2010. Clover manufactures, distributes and sells dairy, yoghurt and beverage products across southern Africa. Clover has manufacturing facilities in South Africa and Botswana and divisions in South Africa, Swaziland, Namibia and Botswana.

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