Quantum Foods Holdings Limited, a South African company, has released an updated trading statement highlighting significant challenges that have impacted its financial performance. In compliance with the JSE Limited Listings Requirements, the company issued the statement to inform shareholders that there is a reasonable degree of certainty that its financial results for the current reporting period will differ by at least 20% compared to the previous corresponding period.
One of the main factors contributing to the expected decline in financial performance is the outbreak of Highly Pathogenic Avian Influenza (HPAI). Quantum Foods announced the HPAI outbreak in September 2023, which has had a significant impact on the business. As a result, the company projects a decrease in headline earnings per share (HEPS) from 14.1 cents per share in the previous corresponding period to a loss per share between 16.7 cents and 18.1 cents for the current reporting period. Similarly, earnings per share (EPS) are expected to decrease from 12.0 cents per share to a loss per share between 17.2 cents and 18.4 cents.
It is worth noting that both HEPS and EPS figures for the current reporting period include a substantial loss of R155.3 million due to the write-off of biological assets caused by the HPAI outbreaks. This loss has impacted HEPS and EPS by 56.8 cents.
The financial information contained in the trading statement is the responsibility of Quantum Foods’ directors, and it has not been reviewed or reported on by the company’s external auditors. The company expects to publish the detailed financial results for the current reporting period on or about Friday, 1 December 2023.
Quantum Foods Holdings Limited is advised by One Capital, a prominent corporate advisor and sponsor, and the law firm Webber Wentzel.