Higher margin, value-added product sales and cost efficiencies contribute to positive performance.

• Revenue up 6,0% to R9,8 billion
• Operating profit up 10,9% to R564,5 million
• Headline earnings increased by 11,7% to R356,6 million
• Headline earnings per share increased by 8,9% to 188.9 cents
• Strong cash generation of R709.7 million, from operating activities before working capital requirements
• No selling price increases on dairy products until late in the review period to protect market shares
• Inflationary costs absorbed through cost cutting initiatives, efficiencies and higher sales volumes
• Final gross cash dividend of 40,94 cps declared bringing the total dividend to 65,15 cps (FY2015: 56 cps)

Clover Industries Limited (“Clover”, “the Group” or “the Company”), a leading branded consumer goods and beverages group operating in South Africa and other selected African countries, today announced excellent financial results for the year ended 30 June 2016.

Commenting on the performance, Johann Vorster, Clover Chief Executive, said: “We are pleased with the continued strong performance, especially as this is off of a very high base set last year. We also experienced extraordinarily challenging operating and economic conditions during the period but managed to counter this by driving sales volumes, improving efficiencies and managing costs where possible.

“We navigated two very different halves of the year, the first characterised by an oversupply of raw milk and consequently lower selling prices; the second by a severe drought that swept the country and resulted in lower raw milk production compounded by higher input costs. The period saw a weakening in the foreign exchange rate which resulted in higher than expected cost inflation.

“Our strategy to balance traditional dairy products with higher margin value-added products continued to gain traction. Although our roots will always remain firmly in dairy; non-dairy and value-added products now contribute 40% to margin on material. Our short-term aim is to increase this to an even split.”

Revenue increased by 6,0% from the previous corresponding period to R9,8 billion following a 9,7% improvement in overall sales volumes. Excluding the effect of the Danone contract which was systematically phased out from December 2014, real growth in revenue was 7,5%.

Despite an 8,4% uptick in cost of sales, an increased contribution from higher margin, value-added products and improved efficiencies led to a 10,9% improvement in operating profit to R564,5 million.

The Group’s operating margins increased to 5,7% from 5,5%, whilst normalised operating margin increased from 5,2% to 5,9%.

Headline earnings rose 11,7% to R356,6 million for the reporting period, whilst headline earnings per share (HEPS) increased by 8,9% to 188,9 cents.

Clover’s brands traded in line with expectations buoyed by solid festive season demand and the heatwave conditions experienced in December 2015. The Fermented Products category, which includes yoghurt and maas, in particular contributed positively to the performance as did the Beverages portfolio which delivered an exceptional performance bolstered by the full benefit of selling price increases implemented in July 2015.

Clover kept dairy selling prices constant for most of the review period and absorbed inflationary increases as far as possible. Sales price increases were however implemented across the product categories in April 2016 to recover high cost inflation pushed up by the weakening foreign exchange rate.

Management continued its focus on cost saving drives and specifically on containing variable costs. Head office incurred no inflationary increases and administrative expenses were reduced by 2.8%, mainly due to a moratorium on new appointments as well as the cancellation of conferences and special events. The successful renegotiation of contracts, reduced selling and distribution costs by 2,6%. Marketing spend was also reduced by 13% by leveraging synergies through a “mother brand” approach.

Cash generation was strong, ending the period at R709.7 million compared to R566,7 million reported in the prior year. Investment activities consumed R332.6 million in cash.

“We successfully mitigated a range of challenges and created stakeholder value through leveraging opportunities and ensuring adaptability to market changes.

“The rate at which we were able to improve efficiencies and reduce costs this year is commendable. Senior management has further committed to a voluntary salary freeze with no increases for the current financial year in order to contain costs further,” commented Vorster.

The prolonged drought primarily in the Highveld and Kwazulu-Natal areas, has seen raw milk production ease downwards on the back of higher feed costs. Clover accordingly increased prices paid to producers in order to protect the primary industry. Current indications are that there is still a challenge to supply the forecasted market with milk. Clover is therefore monitoring the situation closely and will take the necessary action to ensure availability of raw milk.

Since listing in 2010, Clover has invested heavily in acquisitions and rejuvenating its factories and distribution assets for continual and sustainable growth. With the exception of the Bloemfontein yoghurt capacity expansion which is ongoing until July 2018, capex spend will reduce significantly as it now has the platform from which to extract further operating efficiencies, reduce costs and deliver enhanced returns to shareholders.

Commenting on prospects for the year ahead and longer term strategic objectives, Vorster said: “We anticipate that the improved weather conditions predicted for late 2016 and 2017 will normalise milk production, result in a fall in food and beverage input costs and an overall reduction in food price inflation.

“Our immediate focus will remain on fully utilising capacities and the asset base that we have built over the past five years. We are committed to increase the margin contribution from non-dairy and new products in the short term, to a level where it is equal to traditional dairy products.”

“Local opportunities for consolidation where synergies can be leveraged will remain on our radar as will opportunities to increase exports to African markets where currency risk can be mitigated. (read more here: http://www.clover.co.za/news/post_6595-clover-delivers-pleasing-full-year-results-despite-challenging-market-conditions) or visit http://www.clover.co.za/

Outshines other top companies in the 2016 South Africa RepTrak® study. Clover Industries Limited (“Clover”, “the Group” or “the Company”), a leading branded consumer goods and beverages group operating in South Africa and other selected African countries, is pleased to inform stakeholders that it has claimed top spot in the Reputation Institute's study of the most reputable companies in South Africa in 2016.

Johann Vorster, Clover Chief Executive, commented: “We are proud to have achieved this prestigious accolade especially considering that we are a newcomer to the study following the addition of the FMCG industry category this year.

“Our trademarked ‘Way Better’ approach to quality, governance and innovation is proving successful. We are pleased that the general public recognises our efforts and we hope to continue in this light for years to come.

”The study, which is conducted by Reputation House, measures reputation according to four key themes namely, Esteem, Admire, Trust and Feeling as well as seven reputation dimensions: Product/Services, Innovation, Workplace, Governance, Citizenship, Leadership and Performance.

To be included in the study, companies had to score at least a 50% familiarity level with the general public. Fifty well recognised companies in South Africa, across various industries from retail to financial and telecommunications, were measured. Clover, a newcomer to the study, also ranked first in the FMCG industry category which was added for the first time this year.

Clover scored 78 out of a possible 100. Other companies that featured in the top five are Coca-Cola, Woolworths, SPAR and Massmart.

In terms of the seven reputation dimensions, Clover placed first in Governance and Citizenship, second in Products and Services, Workplace, Leadership and Performance and third in Innovation.

On the basis of public support, Clover was commended for its trusted products and was positioned as an ideal company to work for. Visit the Clover website to learn more.

Your wedding day should be one of the most romantic, exciting and unforgettable days of your life and the Wedding Expo®  taking place on the 14th and 15th March 2015 at the dome in Northgate, is the place to visit to transform your  wedding into that extraordinary experience. Planning a wedding is more than just a dress, a cake and a fabulous reception.  What you’re planning needs to be as special as you wish the rest of your life to be. Your wedding is about love, romance, commitment; it’s about having the people close to you witness your union and your dedication to one another. Witness your ‘Happily Ever After’!

The Wedding Expo® understands this and works tirelessly to bring the most comprehensive and creative bridal exhibitors to showcase their wares and services all under one roof and all with one aim – to assist soon-to-be-newlyweds in making their dream wedding a reality - without all of the stress.

Recognised as the South African Bride’s favourite bridal event, The Wedding Expo® boasts premiere exhibitors showcasing everything from the perfect wedding stationery to beautiful blooms, breath-taking wedding gowns to gorgeous jewellery, tantalising table décor to hedonistic honeymoons. The Wedding Expo® also offers the opportunity to interact with some of South Africa’s top wedding planners, photographers and caterers and get expert advice on financial and legal matters. This hands-on advice is invaluable and usually comes at a premium, but at The Wedding Expo®, this is just part of what is offered to ensure your wedding day goes off without a hitch.

A new feature to this year’s Expo is aptly named ‘Make Me a Bride’ where lucky volunteers will be transformed into a bride with hair, makeup and a wedding gown! During their makeover, they will receive key advice from the specialists doing the makeover and a leading stylist. There will be 3 opportunities each day and everyone will get the opportunity to see the fabulous change when she appears on the fashion ramp to show off! They will also receive a VIP invitation to the all-new Wedding Inspirations stand where they will get the opportunity to ‘walk into the magazine.’

The inspiring daily fashion shows offer visitors the opportunity to grab a seat in the front row and catch a glimpse of the latest and most beautiful bridal trends in wedding apparel for both brides and grooms.  From couture designers to ready to wear labels, there is sure to be something for every taste. These will include beautiful creations from couture designers Bridal Room, F Wilson Couture, G&B Couture, Gerald C, New Romantics, White Lilly Bridal and bridesmaid dresses from Bloumossie, Gelique and Bride&co! Ready to wear labels will also be on the runway and you will be able to see Olivelli, Maggie Sottero, Bridal Wardrobe, Bride&co and lingerie from The Corsetiere. Menswear will also be featured so don’t let your groom miss out on seeing suits from Eurosuit, Gerald C, F Wilson and Frank Bespoke.

Don’t miss a chance to vote for your favourite table décor at the special display of tables by our creative exhibitors. You could stand a chance to win a fabulous weekend at the Khaya Ndlovu Manor House in Hoedspruit valued at R7 500.00!

There is already more than enough on offer to entice every bride-to-be not to miss this annual celebration of all things wedding, but one more reason not to miss it is the chance to win a R320 000.00 wedding Multiflora wedding at Diamond 4 Estate as well as a honeymoon at Khaya Ndlovu Manor! Entries at the Expo and you must be there to win. Saturday finalists will be back on Sunday for the finals at 3pm!!

“We are always so excited at the beginning of the year when we are looking forward to our beautiful show. We produce the best wedding planning platform for all those bridal couples! It is a dedicated wedding space with beautiful stands to visit and professional service providers to choose from!” says The Wedding Expo® managing director Amanda Cunningham.

So make a date to attend the Wedding Expo® - it will go a long way to ensuring that your wedding day is the extraordinary experience that you always hoped for.  

Event details: Date: 14th and 15th March 2015 Venue:  Coca-Cola dome, Northgate, Johannesburg Cost: R120.00 per person Fashion shows: 11h30, 12h30 and 14h30 daily Competition draws: 11h30, 12h30 and 14h30 daily.

The Supreme Flour "A Recipe for Creativity" competition is open to all bakers who are residents of South Africa. If you are a professional baker, a student baker or bake to sell, this competition is for you!

Stand a chance of winning one 20 Macadams litre industrial cake mixer worth R14 500 by sending a recipe, accompanied by a photograph, of your favourite festive season treat. The recipe needs to include one or more Supreme Flour products, such as any Supreme wheat product or Supreme prepared mix. Ensure that the Supreme Cake Flour features as a core ingredient.

All entries must be received by Tuesday, 16 December 2014 at 23:59. The recipes will then be evaluated and tested by the Supreme Flour panel of judges on Thursday, 18 December 2014 and the winner will be announced on Monday, 22 December 2014. The winner will be contacted telephonically and published on the website. 

Here’s your chance to flourish your creativity and capability. Here’s your chance to win the magnificent cake mixer. Don’t miss out on this once in a lifetime opportunity of displaying your Flour Power, that’s if you are indeed “Born to Bake.”  

Supreme has become one of South Africa's most loved and trusted wheat flour brand. Supreme offers a range of wheat flours, as well as prepared mixes, which are milled at Foodcorp's long-standing milling site in Pretoria. Supreme has been the professional bakers’ choice since 1919.

To enter the competition visit: http://www.supremeflour.co.za/competitions/?utm_campaign=festivecompetition&utm_source=TF&utm_medium=pressrelease. Competition prize queries may be directed to Foodcorp Milling Division on (012) 308 3208, from Monday to Friday, 8:30 a.m. to 5:00 p.m. until 16 December 2014.

Media contact person:
Liezel van Bergen, FC HO Marketing
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel: (011) 549 1086

Cape Town – 7th October, 2014 – KWV was the big winner in the Brandy category at this year’s prestigious Veritas awards held in Cape Town this weekend, winning 2 Double Gold Awards for its 12 year Barrel Select Brandy and KWV Alambic 15 year Brandy Limited Release, and 4 Gold medals in the Potstill Brandy category. 

KWV won Gold for its Imoya Brandy, KWV 10 Year Brandy, KWV 20 Year Potstill Brandy and Laborie Alambic Brandy and won Silver for its KWV 5 Year Superior Brandy.The Veritas Awards is the longest running and most prestigious wine/brandy competition in SA. 1,767 entries competed for Veritas glory this year, organized by the South African Wine Show Organization. (SANWSA)  

“Our team is proud to have taken home 2 Double Gold, 4 Gold and a Silver at this year’s awards, which were judged by eight renowned international and 100 local judges, ” says Pieter de Bod, Master Distiller at KWV.

“With these latest accolades our entire Potstill range of premium brandies has now won gold." He continues: “Winning a total of seven awards at this prestigious competition is an exceptional achievement and winning 2 Double Gold out of the total 5 awarded gives us deserved recognition and proves that our focus on top quality and innovation really pays off.” 

KWV Marketing Director, Peadar Hegarty, comments that this is a great accolade for the Home of  Best Brandies and, in the true KWV tradition of Proud Pioneers, recognizes the world class craft of Pieter and his team at KWV’s brandy cellars in Paarl, Western Cape. 

These latest accolades follows KWV’s big wins at the recent 2014 International Wine & Spirit Competition (IWSC) awards in London where it won WorldWide Best Brandy for its 12 year Barrel Select Brandy. 

“It is a very proud moment for us to win Double Gold with our recent World’s Best Brandy winners, the KWV 12 and 15,” says Hegarty. “We can now take consumers on a journey of excellence starting with our KWV 3, right through to our award winning potstill brandies 10, 12,15 and 20. No other spirit brand can do this.”

He adds: “With these latest awards KWV has won over 480 awards and medals in just over 24 months, of which 307 were achieved in the past year alone.” 

Ends

About KWV

KWV is one of the leading wine and spirit producers in South Africa. Its head office is located in Paarl, in the Western Cape - a top wine producing region. The company sources wines and grapes from the best and most sought-after viticultural regions in South Africa. KWV is known internationally for brands such as Roodeberg, KWV Wines, Laborie, Golden Kaan, Cathedral Cellar, Cafe Culture, Wild African Cream and the KWV 3,5,10 and 20 Year Old brandies. KWV is a founder member of the Industry Association for Responsible Use of Alcohol (ARA).

What commodity innovations are taking place in trade finance, what is outlook for Africa’s trade corridors, what is South African banks role in an ever-changing trade finance environment? Exploring the state of trade finance, trends in the market and the concerns involved in making the financing of trade possible, the Trade Finance Conference 2014, hosted by Trade Conferences International, will address these issues, and more.

The Trade Finance Conference will take place on 5 & 6 November 2014, at Focus Rooms, Sunninghill, in Johannesburg. The speaker panel includes the likes of:Francois Visagie, Head: Structured Trade and Commodity Finance, ABSA Capital;Richard Harvey, Structured Trade Finance, First Rand Bank;Vanessa Miller, Managing Director, VM Consulting;Yusuf Ali Khan, Trade Head for Africa, CitiBank;Tsepo Tsotetsi, Documentary Trade Product Manager – Africa, Standard Bank;Graham Megaw, Head: International Banking Finance and Operations Support Services, Bidvest Bank;Meluleki Nzimande, Partner in International Trade, Webber Wentzel; amongst others.

Addressing industry developments and trends regarding the challenges associated with entering foreign market trade; innovations in commodity technology, the threat of growing trading companies to banks’ financing, integration across trading platforms, intra-African transactions across multiple regions, and global trading systems and investments, to name a few.

Network with your colleagues in the field dealing with corporate foreign exchange, commodity and export finance, corporate trade and cash, finance and securitization, cross-border negotiations, and Treasury and foreign assets control, to name but a few.

Hurry! The early bird discount rate is still on. Email Jason Joseph, project manager to secure your seat at This email address is being protected from spambots. You need JavaScript enabled to view it. Call 011 803 1553 for more information on the conference or speaking opportunities.

The second development phase at Somerset Lakes, a 42-hectare residential estate in Somerset West, will be released to the market in mid September. The first phase sold out rapidly, with 114 sales being recorded within just six weeks of the launch. Construction of the first phase is well under way and occupation is expected to take place in mid 2015.

The new phase, Waterford Green, comprises 48 freestanding double-storey houses, selling from R1,3 million including VAT, no transfer duty. These two and three bedroom homes offer spacious, contemporary, open-plan living areas and private gardens. All homes include at least two bathrooms, one being en suite, and the three-bedroom design offers a garage and an optional guest toilet.

According to Dave Harris, Sales and Marketing Manager of Somerset Lakes, the new product has been specifically designed to help meet the growing demand for affordable, quality housing in the popular Somerset West area.

“We’ve been inundated with requests from buyers looking for houses,” Harris said. “People want freestanding homes with gardens, views and security, in close proximity to the centre of Somerset West, and that’s exactly what our latest product at Somerset Lakes has to offer.”

Designed by Schabort Associates Architects, the new development phase is located alongside the six-hectare lake that gives the estate its name.

“This unique feature is a huge attraction,” Harris commented. “It’s ideal for swimming, canoeing, sailing, windsurfing and fishing, and home to a rich variety of water birds. A magnificent community clubhouse on the shores of the lake, The Summer Club, will enhance the appeal of this fantastic recreational asset, providing residents with play areas, boat sheds, a sandy white beach, and a swimming pool and deck area with stunning views of False Bay and the Hottentots Holland mountains.”

The developers, Omwieco (Pty) Ltd, a consortium of highly experienced development professionals backed by financial giant Investec, have devoted no less than 40% of the estate’s total area to green, open space for the recreation of residents. This includes the lakes and other water features, a mature forest of stone pine trees, landscaped parks and gardens, and kilometres of walking trails and mountain biking tracks.

An indigenous fynbos nursery has been established on the estate, which was recently awarded the prized 2014 SALI Gold Award for landscape design by the South African Landscapers Institute.“No expense has been spared to implement the most technically advanced security system at Somerset Lakes,” said Harris. "These measures include electrified perimeter fencing with 70 high-definition surveillance cameras, which are monitored around the clock from the hi-tech guardhouse, 24-hour guarding and patrols, and an on-site rapid response team. Other advanced features include biometric fingerprint access control."

All homes in the estate will be hardwired with fibre-optic cabling for superfast internet access, DStv and VOIP telephone connectivity, which will allow free telephone calls within the estate.

A Curro Castle School is being constructed on the estate and is due to open its doors in 2015.

Convenient access to the Somerset West village has been provided by the developers through the R16 million construction of Reunion Drive, which links the main entrance of Somerset Lakes to Sir Lowry’s Pass Village Road under a specially constructed railway bridge. Just a few hundred metres from this entrance, an upmarket new shopping centre is now under construction, where Checkers, Woolworths Foods and Clicks will be the anchor tenants.The Vergelegen Mediclinic and the Somerset West CBD are less than two kilometres away, while popular Somerset Mall shopping centre is just 3,5 kilometres from the estate.

“When you consider the amazing lifestyle advantages Somerset Lakes offers, the security, the convenience of the surrounding amenities, and the incredible natural beauty of the estate, I have no doubt our second phase will sell as fast as the first one,” said Harris.“I strongly advise anyone interested to register online for an invitation to a pre-launch sales opportunity, ahead of our public launch in mid September, to avoid disappointment.”

For further information visit www.somersetlakes.co.za or phone 021 202 2200.

{pp}Soopa! the pioneer in Open User Group Discount Platforms is poised to save South Africans thousands of Rand’s every month. The launch of Soopa.co.za aims to deliver instant and relevant savings to all South African consumers.