Anglo African Ag PLC 1st Quarter Update
31 March 2017 - 5:00PM
UK Regulatory
TIDMAAAP
31 March 2017
Anglo African Agriculture plc
("AAAP" or the "Company")
101% GBP Revenue Growth for the Quarter ended January 2017
and
AAAP Completes Capacity Expansion at Food Manufacturing Plant
Highlights:
* Revenue increases by 53% to South African R10.64 million in food
manufacturing for Q1 Y/E 2017 vs Q1 Y/E 2016 (101% on a GBP basis).
* Tonnage of food flavourings increased by 6% to 303 tonnes Q1 2017 vs Q1
2016.
* Production capacity now more than tripled at AAAP's South African spices
manufacturing facility with installation of new milling equipment.
* Strong customer demand continues to exceed factory output.
* New spice product ranges launched in 2017 gathering traction.
David Lenigas, the Company's Chairman, commented:
"The Company's business is growing very strongly now and we continue to see
increasing customer demand for our specialty spices, food additives and
seasoning. Orders continue to exceed the Company's ability to meet demand for
Dynamic's products supplied for the mass food manufacturing sector. Going
forward, the operation of the new machines significantly boosts our future
manufacturing capacity and should substantially reduce our overall unit
operating cost and boost our competitiveness as we move towards much bigger
turnover and product range offerings. We need more stock to meet customer
orders and we are working hard to quickly address this issue."
Anglo African Agriculture plc (LSE: AAAP), the London Main Board listed food
manufacturing company, is pleased to advise that our 100% owned Dynamic
Intertrade (Pty) Limited ("Dynamic") spices and seasoning manufacturing
business has achieved a solid growth in quarterly revenues with the first
quarter of Y/E 2017 (Q1 beginning 1 November 2016 and ending 31 January 2017)
reaching South African R10,639,486 million (GBP620,461) an increase of 53% year
on year versus Quarter 1 Y/E 2016 and a 101% increase in GBP terms. This was
due to an increase in South Africa Rand revenue coupled with a significant
weakening of the GBP vs the South African Rand. Processes tonnes through the
factory also increased by 6% year on year with Q1 2017 achieving 303 tonnes.
In addition, the new milling machines designed to triple the production
capacity of its spices manufacturing facilities in South Africa, have now been
installed and are operational. These new manufacturing machines will
significantly reduce operating costs going forward and add significant new
production capacity to meet the rapidly increasing customer order book for the
Company's bespoke spices and seasonings and food flavouring additives used in
many sectors of the mass food manufacturing sector.
Manufacturing Capacity Expansion Complete:
Production capacity of AAAP's 100% wholly owned food manufacturing and
marketing business, Dynamic, has now commissioned the new 250 tonne per month
milling machines. These new machines require significantly less clean-out time
between batched of different spice blends and is expected to reduce the
electrical power consumption of the factory by an estimated 50%.
Previous milling was primarily limited to a monthly capacity of only 80-90
tonnes per month of a limited range of soft spices such as paprika and chilli.
The new mills are well suited to the fine grinding of coarse and hard spices
such as peppercorns, nutmeg, pimento, mustard and coriander, which will add new
spice blends to the factory's product lines.
The old production lines will be kept in a production ready state, on a full
care and maintenance basis, to provide additional back-up support in the event
of unscheduled downtime of the new plant and also provide overall production
capacity up to 350 tonnes per month as the business grows.
Order Book and New Product Lines:
Dynamic has secured a further 60 tonne supply order for Cayenne Pepper for the
canned fish Industry for a major canning company, adding to the substantial 300
tonne Cayenne Pepper order for one of the largest tin fish canners announced on
13 February 2017.
2017 has seen good growth in Dynamics's 'Batch Pack' custom blended spice
ranges for major South African processed meat manufacturers, for the
manufacturing of sausage and mince extended products aimed primarily at the
lower end of the mass market with February orders building to 17 tonnes. The
new range of value added customer specific seasonings (Thundergun Grill and
Chakalaka), launched at the end of last year, is accelerating appreciably
through a well known South African restaurant chain. Dynamic's traditional
Biltong Spice (for dried meat) is also growing.
New product ranges now include pepper sauce seasoning for the meat pie
industry, with first orders supplied this month, and seasonings for the tomato
sauce and the instant noodle manufacturing sectors.
About Dynamic:
Dynamic is based in a modern 3,000 m² FSSC compliant facility in Cape Town,
South Africa and is involved in the importation, milling, blending and
packaging of food products for the food manufacturing sector with bespoke lines
that include herbs, spices, additives and seasonings for both the domestic and
export markets.
For further information, please contact:
Anglo African Agriculture plc +44 (0) 20 7440 0640
David Lenigas, Non-Executive Chairman
Rob Scott, Non-Executive Director
VSA Capital Limited (Financial Adviser and Broker) +44 (0) 20 3005 5000
Andrew Raca
END
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