Quantum Foods warns of tough second half due to impacts from Middle East conflict

QUANTUM Foods Holdings, the integrated poultry group, has warned of a significantly more challenging second half due to the conflict in the Middle East and its adverse impact on global supply chains.

- EDWARD WEST

The impact would primarily be due to the result of higher fuel costs, not only on the company’s cost structure but also on the disposable income of consumers, Quantum’s directors said Friday at the release of financial results for the six months to March 31.

The group reported a 16% increase in headline earnings per share to 86,5 cents per share in the first half, and an interim dividend of 22 cents per share was declared, well up from zero the same time last year.

Revenue fell 5% to R3,43 billion. But operating profit increased by 13% to R232 million. Earnings per share increased 21% to 90,4 cents. Head office costs increased from R15m to R19m, primarily due to increased costs related to the valuation adjustment of the now settled share appreciation rights scheme, which was impacted by share price movements.