Interim Financial Results
The six months under review ended on a much stronger note than the first six months of 2009 and the corresponding six months of 2008. While the latter part of the year is traditionally better than the first part, the performance exceeded expectations, and importantly in the right areas. Costs were lower and the product mix improved substantially. Clover Beverages Limited (Clover Beverages) and Danone Clover (Pty) Ltd (Danone Clover) again showed a strong performance in spite of the weak economy and general pressure on value added products. The spiralling increase in input costs in certain key areas abated during this period. When compared to the period ended 31 December 2008, profitability has turned around with much lower costs, after taking into account the normal inflationary pressure on most cost categories. The strategic exit from the bulk cheese market has improved average market realisations and revenue despite lower sales volumes.
The economic crisis necessitated the Group increasing its focus on the business model. This included an analysis of its entire product range, its route to market and the re-design of its complete supply chain under the Cielo Blu project. Unfortunately restructuring of the organisation proved necessary and through project Novus Forma, more than 200 relatively senior people were retrenched.
We present our Unaudited Results for the six months ended 31 December 2009. Please click one of the reports below.
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