Rainbow results for 6 months ended 30 Sep 02
Revenue was higher at R1 789.2m (R1 377.5m), operating profit increased to R115.71m 9R73.15m), and attributable profit was up to R66.68m (R46.57m). Basic EPS were at 25.9cps (18.2cps) and HEPS were at 32cps (17.7cps). The South African agriculture and food industry experienced moderate growth during the past six months driven by both exports and an improvement in local consumption. The demand specifically for chicken has further benefitted from its increasing competitiveness as a source of protein. Whilst interest rates have hardened, this had not yet significantly impacted on demand during the period under review. Considering the adverse trading conditions, Rainbow showed an encouraging performance. The group strategy followed over the past three years, of focusing on productivity and efficiency, has been successfully implemented and is now contributing materially to the group”s performance. Rainbow”s main focus will still be directed at repositioning the group for growth through effective marketing and improved customer service. The streamlining process to reduce costs and improve efficiencies will also continue. With the group”s positioning and strategies outlined, the directors expect an improved performance in the second half of the financial year compared to the same period last year. Profitability for the full year is expected to be materially higher than in the previous year.