reports
With a more favourable environment, PIONEER FOOD GROUP LTD. improves t...
PIONEER FOOD GROUP LTD. (ZA), a company active in the Food Products industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 3 out of 4 stars, as well as its unchanged, defensive market behaviour. The title leverages a more favourable environment and raises its general evaluation to Positive. As of the analysis date March 6, 2020, the closing price was ZAR 109.60 and its potential was esti...
- Jiten Bechoo
- Pratish Soni
Pioneer Foods | Playing into the wind
Innovation is more challenging for PFG given its exposure to commoditised categories. Input cost volatility is high, and consumers resist price increases in PFG's staple products, easily substituting. Maize profitability will come under further pressure in H2 ‘19 as prices remain low and input costs rise further. As such, the combination of GP margin pressure and a decline of volumes have led to a reduction of PFG margins from a peak of 11% in FY '15 to a historic low of c.7% currently. ...
4 directors sold
Four Directors at Pioneer Food Group Limited sold 1,490,735 shares at 78.190ZAR. The significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last t...
- 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...
- Victor Dima
Pioneer Foods (HOLD, TP ZAR 162/share) - One step forward, two steps b...
​Self-help story of margin improvement takes a back seat in FY 17e post weak H1 17A as EBIT margin is down to 2012 levels.FY 18e to show improvements, but EBIT margin will likely re-set at a lower level (ACe +340bps y/y to 11.7% in FY 18e). Downgrade to HOLD on lower estimates and lack of short term catalysts. New TP ZAR 162/share (-11%). Weak FY 17e sets a low base. FY 17-20e HEPS CAGR at 27% looks strong, but confidence needs to be restored to re-rate.
- Victor Dima
Pioneer Foods (Buy, TP ZAR 183/share) - H1 17A result review: Muted sa...
​PFG reported H1 17A sales at ZAR 10.2bn, +1.7% y/y but 3.5% below ACe at ZAR 10.5bn. The South African business (85% of group sales) increased by only 4% y/y, while the International business (15% of group sales) declined by 11% y/y, impacted by a raisin crop shortfall, weaker African exports and a stronger ZAR.EBIT margin dropped to 6.9%, levels last seen in FY 12A, driven by unfavourable maize procurement positions taken in 2016, coupled with a significant decline in the International divis...
- Victor Dima
Pioneer Foods - H1 17e weak trading update drives 7% FY 17e HEPS cut
We cut our FY 17e HEPS forecast by c.7% and H1 17e HEPS by c.20% post the weak H1 17e trading update by PFG. PFG H1 17e trading update guides for H1 17e HEPS at ZAR 2.78 - 3.45/share; 38%-55% y/y lower than H1 16A HEPS of ZAR 5.56/share on one-off higher priced procurement position of maize. We leave our H2 17e and FY 18e estimates unchanged and maintain BUY, though we shave our TP by 2% to ZAR 183/share from ZAR 186/share.
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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