Sovereign Food Investments Limited. JSE: SOV

Sovereignfoods shares

Background of Sovereign Food

[info_list font_size_icon=”24″][info_list_item list_icon=”Defaults-check”]Sovereign Food Investments is a holding company with five principal operations in the broiler industry of South Africa, covering broiler farming, breeding activities, food processing, value-added poultry processing, trade of poultry and animal feed milling.[/info_list_item][info_list_item list_icon=”Defaults-check”]The group has a long history of chicken farming, having been established as a family business near Uitenhage in 1948. The business is still based in this area today, but is the fourth largest producer in South Africa, distributing products across the country and abroad. The group’s brands include Country Range, Chicken’tizers, Cater Chicken, Spar’s Chicka Chicken, Chef’s Choice and customised private labels.[/info_list_item][info_list_item list_icon=”Defaults-check”]An investment group decided to buy the company in 1991, and Sovereign Foods shares were listed on the Johannesburg Stock Exchange (JSE). Some remarkable financial performance and a burgeoning Sovereign Foods share price saw the company being selected as one of the top JSE-listed companies. Sovereign Foods boasts a JSE market cap of R693 million.[/info_list_item][/info_list]

Sovereign Food Shares Growth Driver

[info_list icon_color=”#0c0c0c” font_size_icon=”24″][info_list_item list_icon=”Defaults-line-chart”]Sovereign Foods works around the business goal of achieving the highest net margin amongst South African poultry companies. Investment in key agricultural and processing technologies is a key growth driver, along with a strategic focus on products developed for sale in niche, value-added markets. Product innovation has enabled the business to offer unique, turnkey product solutions to customers, whilst route-to-market growth is achieved by leveraging key partnerships with customers locally and abroad. Approximately 53% of revenue is generated from blue-chip wholesalers and retailers such as Spar, Shoprite, Bidvest and Masscash, with the rest derived from independent sources.[/info_list_item][info_list_item list_icon=”Defaults-line-chart”]The group is about to enter an expansion phase, with the main aims to increase poultry volumes, expand production at the Uitenhage and Hartbeespoort abattoirs, grow exports to selected destinations through current and new trade partners, and buy into acquisitions that meet the group’s criteria.[/info_list_item][info_list_item list_icon=”Defaults-line-chart”]The group’s latest financial data for 2016 indicated revenue of R1.7 billion for the year, with operating profit increasing from R110 million to R119 million. The group has been challenged by an increase in poultry imports which has created lower poultry prices and placed local producers under pressure. However, the company still managed to buy the Hartbeespoort abattoir from Quantum Foods for a purchase price of R120 million, which is forecast to increase overall bird volumes by 31% to 1.2 million per week. Sales volumes, operating margins and headline earnings per share all increased slightly, although return on net assets reduced from 12,6% to 12,4% as the full year effect of the Hartbeespoort facility has yet to reflect.[/info_list_item][/info_list]

Sovereign Food Group Investor Tip

[info_list icon_color=”#0c0c0c” font_size_icon=”24″][info_list_item list_icon=”Defaults-graduation-cap mortar-board”]Whilst many of South Africa’s poultry producers have struggled against the difficult market conditions, Sovereign Foods has managed to chart a course through these difficult waters. Whilst Sovereign Foods share price suffered a slump in 2015, the live online stocks chart shows a strong rebound since. Sovereign Foods shares were at a record price of R9.40 by October 2016, and still rank as a solid buy. [/info_list_item][/info_list]

Sovereign Food Major Shareholders

Country Bird Holdings, Prudential Portfolio Management, RECM and Calibre, Sanlam Investment Management.

[info_list font_size_icon=”24″][info_list_item list_title=”Sector” list_icon=”Defaults-map-marker”]Consumer Staples[/info_list_item][info_list_item list_title=”Industry” list_icon=”Defaults-map-marker”]Consumer Products[/info_list_item][info_list_item list_title=”Sub industry” list_icon=”Defaults-map-marker”]Agricultural Producers[/info_list_item][/info_list]

How to buy Sovereign Food Group Shares

[info_list icon_color=”#0c0c0c” font_size_icon=”24″][info_list_item list_title=”Sovereign Food : How to buy Sovereign Food Group Shares Online” list_icon=”Defaults-circle”]We have made it simple to buy JSE listed firm shares online. The easiest way to buy Sovereign Food Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Sovereign Food Group and assist you with the setup and management of your stock portfolio account.[/info_list_item][info_list_item list_title=”Here are the steps you must follow to Buy / Purchase Sovereign Food Group shares with utmost confidence:” list_icon=”Defaults-circle”]

  1. Start by Filling in the BUY THIS SHARE form.
  2. Insert your name, email, telephone number and monthly remuneration.
  3. Then, Indicate the amount you are looking to invest in Sovereign Food Group.
  4. Click the “ INVEST NOW” button
  5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
  6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)

[/info_list_item][info_list_item list_title=”Buy Shares with Confidence ” list_icon=”Defaults-circle”]Buying JSE shares has never been this convenient and easy. #myfirstshare

View more JSE shares for sale – here.[/info_list_item][/info_list]

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