Clover results pleasing

Milk processor Clover last week announced excellent financial results for the year ended 30 June 2016.

Johann Vorster, Clover Chief Executive, commented: “We are pleased with the continued strong performance, especially as this started from 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 was characterised by an oversupply of raw milk and, as a consequence, 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 our margin. Our short-term aim is to increase this to an even split.” Press release. To read more, click HERE.