South Africa's Pioneer Food Group on Monday posted a 62 percent drop in full-year profit, hit by fines from the country's competition watchdog, but said it expects to return to growth in the current financial year.

The company, which makes bread, breakfast cereal and juices, reported headline earnings per share of 133.5 cents for the year to end-September, compared with 355.4 cents a year earlier.

Headline EPS, the main gauge of profit in South Africa, strip out certain one-time items. Pioneer said earlier this month it had agreed to pay 500 million rand ($73 million) in exchange for having investigations against it related to unfair competitive practices dropped.

The company had also agreed to a reduction in its gross profit by R160 million over a defined period for a selection of wheaten flour and bread products and to increase its capital expenditure by R150 million. Revenue fell 3 percent to 16 billion rand ($2.34 billion), weighed down by lower prices.

Pioneer, which said last week it would buy wine and spirits maker KWV for $119 million to diversify its revenue, said it expects to return to growth in the current financial year. Pioneer shares have gained nearly 25 percent so far this year, compared with a 13 percent rise in Johannesburg's All-share Index.