The company could be delisted in May if a takeover by an Israeli-led consortium goes ahead
In what could be its last set of results as a listed company, foods and beverages group Clover Industries said on Tuesday that SA’s new sugar tax shaved R42.3m off its half-year earnings.
Clover, which could be delisted in May if a takeover by an Israeli-led consortium goes ahead, said net profit fell 0.3% to R232.5m, even as revenues grew 4.1% to R4.4bn.“The ongoing deterioration in disposable household income has had an adverse effect on consumer goods companies, and consensus amongst analysts is that tough times lie ahead for SA’s food producers,” Clover said in its results.
“In addition, the sharp increase in fuel prices during the latter part of the 2018 calendar year made it difficult to contain distribution costs, which could not be passed on to the consumer.” The deal has been opposed by several groups in SA, including the Food and Allied Workers Union and Palestinian solidarity organisation BDS SA.
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