RAINBOW INTERIM RESULTS 31 DECEMBER 2012
Revenue for the interim period ended 31 December 2012 increased to R4.5 billion (2011: R3.9 billion). Operating profit dropped to R89.8 million (2011: R301.5 million), while total comprehensive income for the period slumped to R52.3 million (2011: R200.4 million). Furthermore, headline earnings per share more than halved to 17.8cps (2011: 68.7cps).
As a result of the rights issue announced on SENS on 6 December 2012 and expected to be completed by 4 March 2013, as well as the difficult trading conditions, no interim dividend will be declared and the Board will defer a dividend decision to year-end.
The two major issues facing the poultry industry, namely high levels of imports and record high raw material input costs, are unlikely to be resolved in the near term and will continue to suppress chicken margins. 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. 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.