RCL Foods reports 38.8% increase in half-year earnings for FY2025
SOUTH AFRICA – South African food producer RCL Foods has recently reported a 38.8% rise in earnings for the first half of its financial year 2024/25.
The company, which owns brands such as Rainbow Chicken, Selati sugar, Yum Yum peanut butter, and Sunbake bread, says its headline earnings per share from continuing operations increased to 109.4 South African cents (US$0.06) in the six months ending December, up from a restated 78.8 cents (US$0.04) in the same period last year.
RCL Foods has declared a dividend of 20 South African cents (US$0.01) per share for this period, having not issued one in the previous reporting cycle.
This follows a strong financial performance in 2024, where the company maneuvered through economic challenges that affected consumer spending.
Its revenue for the financial year grew by 6.8% compared to the previous year, while underlying earnings before interest, tax, depreciation, amortisation, and impairments (EBITDA) rose by 15.5%.
The company’s underlying headline earnings, which exclude major one-off items, increased by 8.3% to R1.137 billion (US$75 million).
RCL Foods Limited was established in 1960 as Rainbow Chicken Ltd and is headquartered in Westville, near Durban.
The company, which operates in the consumer goods and milling sectors, employs over 20,000 people and is 77.7% owned by South African investment firm Remgro.
Business Restructuring and Portfolio Adjustments
RCL Foods has recently completed two major restructuring moves as part of its long-term business strategy.
The first was the sale of Vector Logistics, its logistics division, which was finalized in August 2023.
Vector was acquired by EMIF II Investment Proprietary Limited, a subsidiary of Denmark-based A.P. Møller Capital, under a deal that included a 12-month transitional service agreement to ensure a smooth handover.
This transition period ended in August 2024, though RCL Foods and Vector Logistics remain connected through ongoing contractual agreements.
The second restructuring step involved the separation of Rainbow Chicken, which officially exited the RCL Foods group on July 1, 2024, to operate independently.
The poultry company was listed on the Johannesburg Stock Exchange (JSE) in June 2024, with an initial public offering (IPO) of 890.3 million shares priced at R2.85 (US$0.13) each.
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