Rainbow results for 6 months ended 30 Sep 00
Revenue increased to R1.19m (R1.11m), operating profit increased to +R12.4m (-R24.1m), and attributable income improved to +R2.3m (-R40.7m). EPS rose to +0.9c (-15.9c) and HEPS increased +0.4c (-17.0c). In Jul 00, the government imposed anti-dumping duties on unfairly priced imports. However, due to high levels of imported stock in the country at the time, together with forward commitments on imports by traders, the benefits to the industry are only now beginning to filter through. Rainbow”s restructuring continues to make good progress. Further improvements in key performance indicators and production costs are being achieved and progress in marketing and customer services is bearing fruit. Balanced stock levels in the industry and improved price realisations are forecast for the latter half of the year. However, local economic conditions could inhibit performance. In addition, the provisional duty imposed as interim protection against dumping expires on 27 Dec 00, exposing the industry to the unfairly priced imports once again.