Rainbow final results 30 June 2013
Revenue for the year shot up to R10.1 billion (2012: R7.9 billion). Operating profit dropped to R166 million (2012: R414.2 million), while profit for the year attributable to equity holders of the company slumped to R26.5 million (2012: R266.8 million). Furthermore, headline earnings per share from continuing operations fell to 4.6cps (2012: 88.4cps).
In view of Rainbow”s poor trading results and the uncertainties relating to the poultry industry, the Board has resolved not to declare a dividend for the 2013 financial year (2012 final dividend 32cps cents and total dividend 60cps).
The poor state of the global and local economy means a sustainable improvement in consumer sentiment and spending is unlikely in the near future which will impact across Foodcorp, Rainbow and Vector. The poultry industry is at crisis point and anti-dumping protection will be key to the survival of the industry.
The trading outlook for Vector is likely to remain challenging, particularly in the retail business where Vector”s principals are coming under increased pressure from cheap imports. Vector will continue to seek new business to take advantage of the additional capacity created in 2013. The Group continues to explore opportunities in strategic growth markets in the food sector in South Africa and sub-Saharan Africa in line with its long- term aspirations.