Avior Capital Markets - Pioneer Food Group Limited (16PP) Pioneer Foods | Facing the challenges

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Avior Capital Markets

Jiten Bechoo ...

Pratish Soni

Pioneer Foods | Facing the challenges

Pioneer Foods (PFG) FY '18 adjusted diluted HEPS grew by 27% yoy to 526cps. Total volumes grew by 4% yoy after the company passed on maize commodity deflation and discounted juice prices. Most of PFG's core categories market shares rose yoy with the exception of bread (intense price competition and consumer downtrading to maize). PFG is entering new channels for bread sales. Q4 '18 bread volumes grew +5% yoy. Group wide costs are increasing and price passthrough remains challenging. However, price restraint, innovation and astute product tiering will help PFG continue clawing back lost share in our view.

26/11/2018 17 EN

Underlying

Pioneer Food Group Limited

Pioneer Food Group is a Fast Moving Consumer Goods (FMCG) group based in South Africa. Co. is engaged in the manufacturing of food, beverages and related products for human and animal consumption. Co.'s operations are organized along three main divisions: Essential Foods (wheat and maize products, trades in rice, beans, lentils and dried vegetables); Groceries (cereals, rusks, biscuits, cake mixes, baking aids, instant mash potato, dried fruit products, nuts, spreads, dehydrated vegetables, salads, fruit juices, carbonated soft drinks and fruit concentrate mixture); and Pioneer Foods (tomato sauces and ketchup, frozen foods, seafood tinned products, tinned food, instant meals and noodles).

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ZAE000118279 South Africa

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

Jiten Bechoo

Pratish Soni

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Pioneer Foods | Facing the challenges

With a more favourable environment, PIONEER FOOD GROUP LTD. improves to Positive

Pioneer Foods | Playing into the wind

4 directors sold

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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