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Rainbow final results March 08

Revenue was up 25.9% to R6 billion (R4.7 billion) for the year to 31 March 2008. Operating profit rose 19.2% to R780 million (R654.1 million) and net profit for the year attributable to ordinary shareholders increased to R539 million (R474.2 million). In addition, headline earnings per share increased 7.8% to 182.8cps (169.5cps).



Dividend

A final ordinary dividend of 44cps (48cps) has been declared for the period under review.



Prospects

Consumer spending is expected to soften over the next six months as a consequence of the higher inflation and interest rate environment. Maize and soya prices are likely to remain at the current higher levels translating into significantly higher feed input costs than the 2008 financial year. Other costs like fuel, gas, coal, electricity and packaging have also been significantly impacted by inflationary and supply pressures. As in 2008, sales realisations are unlikely to fully recover all the anticipated production cost pressures. As a result earnings for the 2009 financial year on a pre-and post-IAS39 basis are likely to be lower than 2008. In light of the above and the difficult trading environment anticipated for the year ahead, the board has decided to maintain the current year dividend at the prior year level.