RFG Foods posts 5.9% revenue growth in Q2

SOUTH AFRICA – RFG Foods, a South African food producer, has reported a revenue growth of 5.9% to R6.4 billion, “with sales volumes recovering strongly in the second half as consumer confidence started to improve in the country.”

The Western-Cape based food producer, which owns market-leading brands Rhodes, Bull Brand, Magpie, Squish, Hinds and Today, also reported an 18.2% surge in annual headline earnings with growth driven by a strong performance in its regional business.

CEO Pieter Hanekom said the group’s regional segment, covering South Africa and sub-Saharan Africa, delivered resilient revenue growth despite the sustained pressure on consumer spending.

Long life foods revenue grew by 6.5% and fresh foods revenue by 4.9%. Revenue was supported by an increased focus on product and packaging innovation, including the launch of the Rhodes fruit nectar juice range which has been well received by consumers.

International revenue, which accounts for 20% of the group’s total revenue, declined by 12.5% due to weaker global pricing and demand for canned deciduous fruit.

Revenue was further impacted by the lower volumes due to ongoing shipping delays at the Cape Town and Durban ports.

“In our international business, the continued equipment upgrade and replacement programme at the Tulbagh fruit products plant will support further efficiency gains to counteract the headwinds of a stronger exchange rate and lower global pricing,” Hanekom said.

RFG invested R324 million in its production facilities across South Africa and Eswatini during the year, which included large-scale equipment replacement and upgrades as well as capacity expansion at the Tulbagh fruit products and Krugersdorp meat products factories.

RFG Foods is also expanding its product range with the launch of the 200ml recyclable plastic bottle, not only enhancing product convenience but also strengthens the brand’s position in the growing spices category.

“The new 200ml value pack is designed to cater to the modern consumer’s needs. It offers the perfect balance of convenience and sustainability, allowing customers to continue cooking with Hinds Spices without the worry of wastage or mess,” said Shevani Singh, brand manager at RFG.

In addition to the Hinds Spice range, to complement the new packaging, RFG is also introducing a Signature Blend range, which includes Aromatic Garlic and Herb, Braai Spice, Veggies, Roots, and Beets Spice.

These blends aim to meet the diverse flavour needs of South African consumers, offering versatility and depth to both everyday meals and special occasions.

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