South Africa’s largest food company warned earlier this month that its first-half results would be negatively affected by foreign exchange losses in Dangote Flour Mills in Nigeria and a weak performance by its Kenyan unit, Haco Tiger Brands.
The group on Wednesday said a solid performance in the domestic business had largely been offset by foreign exchange losses arising from the devaluation of the Nigerian Naira and a “particularly disappointing” performance by the Kenyan business, Haco Tiger Brands.
Domestic turnover growth of 8% was driven by volume growth of 2% and pricing inflation of 6%. The maker of All Gold tomato sauce and Jungle Oats said the domestic businesses had fought off heightened competition over the six month period “demonstrating the resilience and power of the group’s brands in challenging times”.
Headline earnings per share were down just 2% at 852,9 cents, in line with expectations. The company declared an interim dividend of 339 cents per share, up 3% on March last year.