Quantum Foods Holdings Limited provided earnings guidance for the twelve months ended 30 September 2016. For the period, the company expects headline earnings per share of between 21.6 cents and 32.4 cents, being a decrease of between 40% and 60% compared to the headline earnings of 54.0 cents per share for the previous corresponding period. The company expects earnings per share of between 32.6 cents and 43.5 cents, being a decrease of between 20% and 40% compared to the earnings of 54.4 cents per share for the previous corresponding period. The results for the twelve months ended 30 September 2016 have been affected by: Significantly increased raw material costs, associated with the drought in South Africa and continued ZAR weakness, which negatively affected the cost of raw materials, and specifically impacted earnings in the eggs as well as in the layer livestock farming businesses where price recovery has not been sufficient; Lower egg sales volumes due to an increased prevalence of diseases that negatively impacted the productivity of layer livestock farming; The implementation of the revised broiler business model, which resulted in the exit of the broiler meat market and the company becoming a broiler livestock farmer, supplying other abattoirs. This was completed with the sale of the Hartbeespoort abattoir in October 2015 and has resulted in largely de-risking the broiler business with earnings more dependent on volumes and farming efficiencies than the ability to recover cost increases from the market. This business model change contributed positively to earnings for the year. The profit from the sale of the Hartbeespoort abattoir is included in the expected earnings per share for the twelve months ended 30 September 2016; and Lower earnings from African operations, impacted by instability in currencies, lower sales volumes and higher input costs not being recoverable from selling prices due to increased pressure on the consumer.