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RCL Foods, the producers of Rainbow Chicken, have reported a loss of nearly R1 billion.
Food producer RCL Foods reported a loss of R959 million for the year ended June 30, following a difficult year exacerbated by the impact of Covid-19 and the national shutdown.
The group, whose brands include Rainbow Chicken, Ouma Rusks, Sunbake bread and Selati sugar, said in its annual results for the fiscal year that a direct cost impact of R266 million associated with the pandemic, along with the downgrading of sovereign ratings of SA, resulted in R1. 5 billion in non-cash amortizations or R1.25 billion after taxes.
RCL’s shares strengthened by almost 3% in early trading, to R8.73 per share.
The group managed to increase its revenue by 7.4% to R27.8 billion, while the operating profit before depreciation, amortization and impairment (EBITDA) increased to R1.63 billion from R1.52 billion.
RCL said its total staple food basket grew 8.5%, while its grocery segment showed growth, led by pet food, peanut butter and biscuits. It said its sugar business unit produced a “significant improvement in profitability, albeit from a low base.”
Meanwhile, his chicken business was affected by the closure of quick-service restaurants during the first months of the closure. “We remain confident in our plans to restore margins to acceptable levels once the demand curve normalizes, and we hope this will be supported through the effective implementation of the Poultry Sector Master Plan, which aims to stimulate local demand. , boost exports and protect the industry against dumping through trade measures, “the group said in a statement.
He passed a final guess per share of 10 cents, bringing his total dividend per share for the year to 25 cents.
