Africa Year end trading update
The Group announces that for the year ending 30 September 2018, adjusted Profit Before Tax is expected to be circa $ 5 mill., which exceeds market expectations by more than 10%. This strong performance has been driven largely by the Retail and Cold Chain Food Products division, which has delivered strong volume and margin growth during the year as a result, inter alia, of the continued successful rollout of the Macro Stores and the resulting increase in demand for Cold Chain Food Products and stock feed.
This improved performance is despite the approximate 12% lower than expected wheat yields the Group experienced at the end of the year, as a result of Bacteria Leaf Streak (BLS), as announced in our Trading Update of 29 August 2018. At this time, the Group does not expect BLS to have a material negative effect on its consolidated results for the coming financial year.
Net debt at the year end is expected to be in the region of circa $ 59 mill. The Group expects to report audited annual results for the year ending 30 September 2018 on 21 November 2018.