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Rainbow results for 12 months ended 31 Mar 03

Revenue increased 23.8% to R3 763.7m (R3 040.2m), operating profit was 56.9% higher at R246m (R156.8m), and attributable profit was up 64.8% to R253.6m (R153.9m). HEPS improved 76.1% to 106.2cps (60.3cps). The significant increase in revenue is predominantly attributable to the recovery of higher feed raw material input costs in sales prices. The benefits of a vertically integrated supply chain, spanning several elements of potential procurement risk, were realised during 2002. Due to the extent of this integration and its resultant cost efficiency, the group was able to reduce its exposure to the consequences of the market realities faced by the chicken industry. Rainbow”s optimisation strategy is progressing as planned and benefits are already beginning to be realised in terms of both cost efficiencies and better realisations as a result of an enhanced product mix. Management”s main focus will be the continued pursuit of being the low cost quality producer, directed at its performance optimisation and customer centered strategy as the group”s platform for growth. The successful execution of this strategy is dependent on the key elements of people skills and knowledge management, which will receive further attention and support. This will likely result in a period of consolidation in the year ahead.