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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RCL Foods delivers improved earnings despite 2.1% dip in revenue for the year

SOUTH AFRICA – The South African consumer goods and milling company, RCL Foods has said headline earnings for the year ended June 2018 increased 52.7% to US$58.31 million while revenue totalled US$1.69 billion, a 2.1% decrease attributed to reduced volumes in the restructured Chicken business. Despite a challenging business environment and a strain taken on both the food and sugar businesses as a result of cheap imports, profitability was boosted by strong performance for its chicken business, strong growth through its brands and a focus on cost containment. Headline earnings…

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Tiger Brands, RCL Foods lost US$479.59 million in one day after Listeriosis Outbreak

SOUTH AFRICA – Shares in South Africa’s biggest consumer foods producer Tiger Brands and RCL Foods fell on Monday after the government linked a deadly listeria outbreak to cold meat products “polony” made by Tiger unit Enterprise Food. Tiger Brands lost about US$479.59 million in market capitalisation just in one day, based on a number of analysts. The company dropped a little over 7% in morning trade. Both Tiger Brands and RCL Foods suspended processed meat production at their plants, after health authorities ordered a recall of cold meats linked…

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RCL Foods recalls polony meat over Listeriosis outbreak, halts production

SOUTH AFRICA – RCL Foods said on Monday its Wolwehoek processing plant had suspended all production of its Rainbow Polony brand and was in the process of recalling the product from its entire customer base over a Listeriosis outbreak. Health Minister Aaron Motsoaledi said on Sunday processed food manufacturers Enterprise, a division of Tiger Brands, and Rainbow Chicken Limited had been issued with safety recall notices following the outbreak. RCL Foods said on Monday its Wolwehoek processing plant taking its precautionary measures “despite the fact that the results from testing of…

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RCL Foods say their new pet-food plant plans are on track

SOUTH AFRICA – RCL Foods, formerly known as Rainbow Chickens, said in its latest annual report released yesterday that its new pet-food plant was on track. “The commissioning of the new R123m pet-food plant is on track, with full production expected by December 2017. “The plant will feature innovation and technology that is not currently available in South Africa, and will assist to entrench and grow market leadership, with a focus on the premium segment and vet channel,” the group said. The company said its grocery business unit had experienced…

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Bird flu costs RCL Foods nearly US$2m

SOUTH AFRICA – One of South Africa’s largest food producers RCL Foods on Wednesday said that it had suffered R26m (US$1.96m) in losses from culling chickens due to an outbreak of highly pathogenic avian influenza. “(Avian influenza) has recently been detected at the company’s Heuningdal breeder farm in the Western Cape, situated between Malmesbury and Darling, after also having experienced a small outbreak at our Viva breeder farm near Muldersdrift in Gauteng,” it said in a statement. RCL Foods said poultry at both sites had been culled, with a loss…

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