Prospects for growth there
IF THE South African Poultry Association finds a way around the proposed duty increases on imported poultry products, local producers could end on competitive footing with their international counterparts. The organisation says local production and employment in the poultry industry has been under threat because of the low-priced poultry imports.
Eastern Cape-based business Sovereign Foods released its interim results for si x months ended 31 August 2013, which showed poultry stock earned 18.9 cents/share, 9% lower in comparison to the previous period. The counter also has lower debt commitments which have led to it achieving a net gearing of 6% from 14%.
You do not get an interim dividend (only final is declared) with this stock, but you will have exposure to 25 poultry production farms producing 95 000 tons of poultry per annum. You also get a dividend yield of 2.86% and a P/E ratio of 7.58 with a stock that is trading at a deep discount to NAV of 973.99c.