September 7, 2017 / 7:57 AM / a year ago

South Africa's Clover warns on profit citing drought, rand

JOHANNESBURG, Sept 7 (Reuters) - South Africa’s Clover Industries expects its annual profit to fall by as much as 67 percent due to prolonged drought conditions and rand volatility, the dairy products company said on Thursday.

Clover forecast headline earnings per share (EPS) of between 62.4 and 66.1 cents for the year which ended June 30, down from 188.9 cents a year earlier.

Headline EPS strips out certain one-off items and is the main profit measure in South Africa.

“Stagnant and falling selling prices and rising input costs are forcing Clover to make difficult decisions to sustain short-term operations, while still aligning these decisions with long-term growth objectives,” the company said in a statement.

Despite Africa’s most industrialised economy emerging from recession in June, helped by recovery in agriculture after a drought last year, consumer spending and investor confidence remains dampened. (Reporting by Tanisha Heiberg; editing by Jason Neely)

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