RCL Foods register strong earnings growth despite chicken division lagging behind

SOUTH AFRICA – South African food processor RCL Foods, has reported a 14% rise in full year revenue for the year ended June 2021 to R31.7 billion (US$2.21 billion). More notable is that the group almost posted an eight-fold increase in headline earnings by 736% to R958.1 million (US$66.94m), from a loss last year after write-downs of around R1.5 billion (US$104m) due to the Covid-19 financial fallout. Earnings before depreciation, amortisation and impairment (Ebitda) was up 47.3 percent to R2.51 billion (US$175m) and headline earnings per share jumped 723.7% to…

Read More

Paul Cruickshank slated to take reins of South Africa based RCL Foods as Miles Dally retires

SOUTH AFRICA – South African consumer goods and milling company, RCL Foods, has promoted its Chief Operating Officer of the Food Division, Paul Cruickshank as the company CEO. Paul will be taking over the helm of the company from Miles Dally who will be retiring from the company effective November 30. According to the JSE listed company, Miles Dally has been the head of the organization since 2003. “The board would like to extend its sincere thanks and appreciation to Miles for his invaluable leadership and contribution throughout his 18…

Read More

South African sugar manufacturing giants RCL Foods, Tongaat Hulett expect rise in full year earnings

SOUTH AFRICA – RCL Foods, South African consumer goods and milling company expects its profit for the year ended June 2021, to exponentially rise by as much as 592%, boosted in part by strong recovery in sugar and baking segment. The owner of Selati sugar, Ouma rusks and Rainbow Chickens brands, indicated in a trading update that it expects its headline earnings per share to be at least 90 cents compared to 13 cents a year ago on a recovery in sugar and baking. Meanwhile, its earnings per share would…

Read More

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…

Read More

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…

Read More

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…

Read More

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…

Read More

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,…

Read More

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%…

Read More

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.…

Read More