Ugandan Yo Kuku chicken brand owner to bag US$7m from IFC to spearhead expansion plan

UGANDA – HMH Rainbow Ltd, a producer of fresh and frozen chicken in East Africa under the brand name Yo Kuku, is eyeing financial backing from the private-sector investment arm of the World Bank, International Finance Corporation (IFC) to support its expansion plan. HMH Rainbow headquartered in Uganda is a joint venture between Ugandan businessman Alykhan Hudani (66.5% stake) and Rainbow Farms Investments Proprietary Ltd (33.5% shareholding). Rainbow Farms is a wholly owned subsidiary of RCL Foods Ltd, a publicly listed South African food manufacturer. The poultry company seeks to…

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RCL Foods makes plant-based food more accessible in Africa through newly formed JV

SOUTH AFRICA – South African consumer goods company, RCL Foods has formed a plant-based joint venture with US-based alternative foods supplier LIVEKINDLY Collective. This comes amid a growing consumer interest in plant-based foods and more sustainable living globally. According to RCL Foods, the establishment of the local JV, LIVEKINDLY Collective Africa has already been approved by the Competition Commission. It will market, sell and distribute all of LIVEKINDLY Collective’s brands – including the well-known local Fry Family Food Co. and the international brands LikeMeat and Oumph! – in South and…

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South African food service suppliers rally support to foster recovery of hospitality industry

SOUTH AFRICA – A consortium of professional food service brands in South Africa i.e., Marvello and Meadowland owned by Siqalo Foods, Your Food Partners by RCL FOODS, and Bidfood have partnered to launch the Sekela Hospitality Support Programme aimed to foster recovery of the local hospitality industry. Struggling black-owned restaurants, catering and accommodation establishments have been hit hard by the devastating impact of COVID-19 and will now obtain the needed support through the program valued at R2 million investment per year. It is a holistic, phased initiative that will provide…

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RCL Foods reports 10.5% rise in interim revenue boosted by its diverse portfolio

SOUTH AFRICA – South African food producer RCL Foods has reported a 10.5% rise in half-year revenue to R15.7 billion (US$1.04 billion) from R14.2 billion (US$941m), largely driven by pricing in its sugar and baking products, upbeat milling volumes and strong performances in its Vector Logistics business. RCL, which owns Selati sugar, Ouma rusks and Rainbow Chickens brands, reported headline earnings per share of 59.7 cents for the six months ended December 31 a rise of 12% from 53.3 cents last year. “With Covid-19 mitigation strategies firmly in place, including…

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Majority shareholder of South African RCL Foods offers to buy company’s shares

SOUTH AFRICA – RCL Foods, South African consumer goods and milling company has received a bidding offer from its majority shareholder, Remgro to acquire over 100 million shares of the company in a bid to unlock the company’s value and turn its fortunes around. According to reports by Business Day, the heavyweight investment company is willing to spend as much as R805m (US$52.7m) to raise its stakes in the company, a move that will give minority shareholders an easy pay out in the highly illiquid stock.  To this end, Remgro,…

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South Africa’s RCL Foods grows half-year revenue 7.1% to US$930m

SOUTH AFRICA – The South African consumer goods and milling company, RCL Foods has reported an increase in revenue of 7.1% to R14.2 billion (US$930m) in its interim results for the six months ended December 2019. Earnings before depreciation amortisation and impairment were up 7.7% to R1.2 billion (US$78.6m). Headline earnings per share went up 2.7% to 53.3 cents per share. But not considering for material once-offs and accounting adjustments, headline earnings per share increased 23.8% to 63 cents. The improved profitability helped boost cash generated from operations by 20.8%…

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RCL Foods acquires Imperial Logistic’s cold chain unit in South Africa

SOUTH AFRICA – RCL Foods, South African consumer goods and milling company has inked a deal with Imperial Logistics to consolidate its logistics division, Vector with Imperial’s cold chain business. Imperial Logistics Limited is an African and Eurozone logistics provider of outsourced, integrated freight management, contract logistics and distributorships in South Africa and internationally, with networks in 32 countries. RCL not indicating the value of the deal will acquire certain assets and staff related to the cold chain business resident within the Seller’s Consumer Packaged Goods business in South Africa.…

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RCL Foods reports full year loss amid challenging operating environment

SOUTH AFRICA – The South African consumer goods and milling company, RCL Foods has reported an after-tax loss of R184m (US$12.08m) for the year ending June 2019, as increased pressure on its sugar and chicken business continued to hurt its operations. RCL Foods, which reported an after-tax profit of of almost R878m (US$57.63m) in 2018, also saw its headline earnings per share (heps) fall by 60.8% to 37.9c in the 12 months to end June 2019. The Rainbow Chicken and Selati Sugar owner blamed high levels of chicken dumping and…

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RCL Foods half year earnings fall 26.3%, faults chicken and sugar imports

SOUTH AFRICA – South African packaged goods company, RCL Foods has said that headline earnings in the half year ended December decreased by 26.3% to US$33.4 million, attributed to pressure from increased sugar and chicken imports. The firm has expressed concerns on dwindling operations as a result of increased importation of sugar and poultry products into the country. The Johannesburg Stock Exchange (JSE) listed food producer has said that dumped imports have weighed heavily on its performance during the period. “Chicken imports have grown by over 25% in the period,…

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Rhodes Food to acquire RCL’s protein snacking business for US$2.1m

SOUTH AFRICA – Rhodes Food Group, one of the top listed food companies on Johannesburg Stock Exchange has said that it is in the process of concluding a deal to acquire RCL Foods’ protein snacking business for US$2.15 million. The transaction which is subject to regulatory approval will see Rhodes Food integrate the yet to be acquired business into its ready meals operation in Groot Drakenstein. RCL said RCL’s protein snacking business currently produces protein snack foods for Woolworths, and this would be an addition to its portfolio which comprises…

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